GBP/JPY Weekly Price Forecast – British Pound Gives Up Gains Against YenThe British pound gave up early gains in the week to form a less than impressive candlestick against the Japanese yen.
The British pound initially rallied against the Japanese yen during the week, showing more of a “risk on” type of attitude. At this point, the market will continue to see a lot of concern out there when it comes to the geopolitical situation, as the coronavirus issue also has taken front and center stage. As infection rates continue to spite, and US/China tensions are rising a bit, there are lots of reasons to think that perhaps the overall risk appetite of the market is going to be suspect at best. With that being said, you should keep in mind that this pair does tend to be somewhat sensitive to the risk appetite of global markets.
GBP/JPY Video 29.06.20
Looking at the shape of this candlestick, I believe that the ¥132 level continues to be supportive and therefore if we were to break down below the candlestick, it is likely that we go looking towards the ¥129 level. That is an area that has been supportive more than once in the past, so it is worth paying attention to. The trading action will continue to be sloppy overall so I prefer to short this market from shorter time frames, unless of course we turn around a break above the ¥135 level which would be a relatively bullish sign on the longer-term chart. I think the only thing you can count on in this market right now is going to be a lot of confusion and noise, so make sure that you trade a relatively small position as headlines will continue to play havoc with price action.
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