GBP/JPY Weekly Price Forecast – British Pound Pulls Back Towards Previous Resistance

GBP/JPY Video 15.06.20

The British pound has pulled back rather significantly from the ¥139 level, reaching just above there but failing to overtake the €140 level. By pulling back the way it has, the pair looks like it wants to test the ¥135 level rather significantly, and as a result we probably have some noise ahead of us. However, the default position would be staying within the consolidation area between ¥135 and ¥140.

The fact that we are recovering on Friday suggests that we may be going back and forth in order to cause more consolidation. Remember, 80% of the time most markets are consolidating so therefore you should always assume that there are a couple of potential levels right here that keeps the market in check.

However, if the market was to break down below the candlestick for the week, then the JPY/JPY pair will probably go down towards the ¥132 level, followed by the ¥129 level. Obviously, this pair is overly sensitive to risk appetite, which is somewhat all over the place right now. Because of this, it is going to be difficult to hang onto a larger longer-term position, but if we were to turn around a break above the ¥140 level that would be a major victory for the buyers. To the downside, breaking down below the ¥129 level would be extraordinarily negative, although very unlikely in the short term. I think the only thing you can count on here is going to be more choppy behavior going forward.

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