GBP/JPY Weekly Price Forecast – British Pound Stalls Against Yen for the WeekThe British pound has gone back and forth during the course of the week, bouncing around the ¥133 level, as we continue to try to figure out where we are going next.
The British pound went back and forth during the trading week, as we are trying to figure out where to go next, especially considering that the pair is highly sensitive to risk appetite. We are struggling with the ¥135 level above, which is essentially the middle of the 1000 PIP range between the ¥130 level and the ¥140 level. Because of this, and the fact that the 50% Fibonacci retracement level is sitting right there, I do think that there will be overhead pressure.
GBP/JPY Video 06.04.20
That being said, the market is very likely to continue seeing a lot of noisy trading, as the coronavirus shuts down the world’s economy. The British pound has been relatively strong as of late, but you should keep in mind that it is historically cheap. At this point, the market is likely to see headlines that will influence trading but one thing that’s worth keeping in mind is that the news flow is going to be quite fluid. I do think that given enough time the market will make a longer-term decision, and I must admit that although there are a lot of negative headlines out there just waiting to happen, the last three weeks in this pair is much more bullish than some of the other pairs that I am watching. That being said, if we break down below the bottom of the candlestick for the trading week, then we may have to “reset” closer to the ¥130 level before bouncing. Keep in mind that this pair goes up and down with risk sentiment, so that of course is one of the most important things you should pay attention to.