GBP/JPY Weekly Price Forecast – British Pound Sitting on Support

The British pound has gone back and forth during the course of the week, forming a somewhat neutral candlestick sitting just above the ¥135 level, and therefore it is likely that we are going to continue to see noisy dancing around. At this point time, if we can break above the top of the candlestick for the weekly trading, then it is likely that we will go looking towards the 50 week EMA. Having said that, the market then could fade at this point. That being said though, if we break above the 50 week EMA, then it is likely that the ¥140 level would be the target. Keep in mind that this pair is highly sensitive to risk appetite, so pay attention to what is going on with the stock markets and the like.

GBP/JPY Video 21.09.20

On the other hand, if the market was to break down below the candlestick for the week, then it is likely that we could go down to the ¥132 level, and then possibly looking towards the ¥130 level underneath. With this being the case, this is a market that continued to see a lot of choppiness during the week, and it is likely that we will continue to see adverse reactions to the occasional headline when it comes to Brexit, so keep your position size small, because quite frankly the algorithms out there will react to the latest rumor, headline, and sound bite. We have a lot of concern out there, so obviously it will be very important that you keep your position size down.

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