GBP/JPY Weekly Price Forecast – Pound Continues to Face Same Headwinds

As we head into the weekend, Brexit negotiations continue to be a mark of showmanship in the media, and therefore you can pretty much bank on the idea of markets being thrown around. With this being the case, if we can break above the ¥140 level on a daily close, that might get people moving to the upside. Also, we have a conversation over the weekend between Ursula von der Leyen and Boris Johnson that will have people thinking that possibly something comes out of it, but I would not hold my breath based upon what we have seen so far. The ability for both Europeans and British negotiators to fail at every turn has been quite an impressive thing to watch, so it is difficult to imagine what happens next.

GBP/JPY Video 21.12.20

At this point in time, we need to see some type of results in the Brexit negotiations to continue moving forward. I do believe at this point we are going to get a gap on Monday again, and who knows what direction that will be? Because of this, I do not like the idea of playing this market right now, because quite frankly it has been so driven by news and comments coming from politicians that it is almost impossible to deal with. With this being the case, it is very likely we will see a lot of choppy behavior and if we can break above the ¥140 level on a significant move, it could open up the possibility of the ¥142.50 level being tested.

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