GBP/JPY Weekly Price Forecast – British Pound Gives Up Early Gains

The British pound has initially tried to rally during the course of the week, reaching towards the ¥138 level, and therefore testing the top of the short-term range. Ultimately, that is an area that traders will continue to bounce back and forth around, and as a result I think what we are looking at is more sideways action than anything else, but if we do break down below the ¥135 level then we could be looking at the ¥133 level which was the bottom of a hammer from about two months ago.

GBP/JPY Video 09.11.20

Obviously, if we can break above the ¥138 level, then it would be very bullish, and I think what happens next would be the ¥140 level being tested. With that being the case, I think we are simply killing time in the short term, trying to figure out what to do next. All things being equal, I think that if you are a longer-term trader you are going to struggle with this pair, because we still have the specter of Brexit out there overhanging people’s heads. If and when we finally get some type of resolution to that, then we can place more confidence in a longer-term trade, but right now I think we are seeing is a lot of noise that cannot be traded from the longer-term standpoint.

At this point in time, you are going to have to trade this market in the 300 point range based upon daily time frames, or perhaps even smaller ones than that. Longer-term moves are not forthcoming quite yet.

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