GBP/JPY Weekly Price Forecast – Pound Slams Into Major Resistance

The British pound has rallied significantly during the course of the week, reaching towards the ¥140 level. This is an area where we have seen selling pressure and resistance previously, and therefore it does make quite a bit of sense that we have pulled back just a bit. At this point in time, this is a market that is going to be highly influenced by the Brexit situation, which of course is fluid at best. However, this is a market that has clearly shown itself to be resilient if nothing else.

GBP/JPY Video 30.11.20

Short-term pullbacks at this point in time should be buying opportunities, especially with the 300 point range that we have been in for the last couple of weeks. The ¥137 level underneath is massive support, at least from a short-term standpoint. It is likely to see a market to continue to deal with Brexit headlines and perhaps risk appetite in general. With this being the case, I do believe that eventually we probably break out but in the short term is going to be difficult to see clarity and therefore you probably are better off trading this market from a short-term standpoint in the 300 point range. Unfortunately, it is difficult to trade based upon Brexit due to the fact that headlines can come out at any time to drive this market in either direction.

With that in mind, it is probably better to wait until we get to the bottom of the range to start buying again based upon the overall resilience that we have seen.

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