GBP/JPY Weekly Price Forecast – British Pound Trying to Break Out Against Japanese YenThe British pound has been pretty bullish during the week against the Japanese yen as we are attacking the ¥145 level. At this point, the market looks likely to break out, especially if we can get some type of “risk on rally.”
The British pound initially pulled back during the week, but then found the 200 week EMA to be strong enough to turn things around and reach towards the upside. The ¥145 level is of course a minor level of importance from a psychological standpoint, so don’t be surprised at all to see this market take off a bit if we can get above there. If the market turned back around, the ¥141 level seems to be a very strong support level. Expect a lot of choppiness but keep in mind that this pair does tend to move right along with risk appetite. However, there is a new dynamic in this pair featuring the Japanese yen itself.
GBP/JPY Video 24.02.20
Money is starting to flow out of Japan just simply because of economic conditions worsening. It looks as if the Japanese are going to head into recession, and of course the coronavirus issue is putting more pressure on the Japanese economy as cases is starting to increase their and of course the Chinese and Japanese have a lot of trade back and forth.
The candlestick does look very healthy, so at this point I think the buyers will eventually overwhelm things. That being said, heading into the weekend a lot of buyers probably don’t want to put on a ton of risk. Next week should be positive, but we need to get past the ¥145 level before putting money to work. With that in mind, I am cautiously optimistic but the one thing I know I don’t want to do is sell this market.