GBP/JPY Weekly Price Forecast – British Pound Pulls Back In Risk Off Move

The British pound pulled back during the week, mainly in reaction to a major “risk off” move as the Americans have killed a top Iranian general.
Christopher Lewis
GBP/JPY Weekly Price Forecast - British Pound Pulls Back In Risk Off Move

The British pound initially tried to rally during the week but found enough resistance above the 200 week EMA to break back down. Ultimately, the market looks as if it is consolidating though, so overall this is a market that could find buyers and as long as we can stay above this little bullish flag, it’s likely that we will turn around and climb back towards the highs of the candlestick. At this point, it’ll be interesting to see how this plays out because we have a lot of noise when it comes to the Brexit situation, and that of course risk appetite around the world.

GBP/JPY  Video 06.01.20

The Japanese yen is of course a safety currency, so as long as there is more of a “risk on” type of situation, we should continue to rally. However, if we were to break down below the ¥140 level, then things could get a bit murkier when it comes to this pair. Unfortunately, this is a pair that is going to have a lot of noise attached to it, so it’s probably going to be a very difficult market to trade. As long as politicians have access to microphones, you can almost guarantee that it will be a lot of chop back and forth.

It does look like we are trying to break out to the upside but these are the type of move as it can take several months to complete, so at this point expect a lot of back and forth trading with perhaps an eye to the upside if we ever get enough good news to get the markets and more of a “risk on” type of attitude.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.