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.

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