GBP/JPY Weekly Price Forecast – British Pound Pulls Back From Major Level

The British pound initially rally during the week, reaching towards the ¥140 level, but then gave back the gains as we plummeted towards the ¥138 level. This is a market that has a lot of resistance just above at the ¥140 level, perhaps opening up a move down towards the ¥136 level. Between there and the ¥135 level is a massive support zone that should come back into play if we do end up dropping that far. On the other hand, we could simply go sideways between the ¥138 level and the ¥140 level as we are waiting for some type of catalyst.

GBP/JPY Video 24.08.20

For a longer-term trader, we can break above the ¥141 level, it almost certainly it opens up a move towards the ¥145 level. If we were to break down below the ¥135 level, the market would probably drop down towards the ¥132 level. All things being equal though, I think that this pair will continue to follow the risk appetite of traders around the world, as it tends to rise right along with risk appetite in fall right along with it as well.

In this general vicinity, I think that we are trying to figure out where to go next, as the world certainly is looking at the coronavirus numbers as well as the overall economic conditions. Part of the major sell off late in the week was due to PMI figures disappointing in Germany, which has people worried about the global economy yet again, especially as coronavirus numbers continue to climb in Europe.

For a look at all of today’s economic events, check out our economic calendar.