GBP/JPY Price Forecast – British pound likely to bounce and offer another opportunity

The British pound has bounced slightly to start the day off on Wednesday against the Japanese yen, which is probably overdue considering the last couple of days have been so negative. With the oversold condition, perhaps people were taking profit, just as I had done previously. At this point, I do think that the market probably has to bounce a bit, but I also believe that we will see plenty of resistance above that can be taken advantage of.

GBP/JPY  Video 01.08.19

At the ¥135 level I would expect to see a lot of resistance, just as the 20 day EMA will come into play as well. The 20 day EMA has been extraordinarily resistive as of late, as you can see clearly on the chart. Regardless, there is absolutely no way I would be a buyer of this pair as the Brexit is a long way from being fixed, and I do think that we will eventually turn things around and continue to the downside. In fact, I believe it’s probably not until we get closer to the October 31 deadline that buying this pair is going to be possible.

The ¥131 level underneath has been a target of mine for a while, as it is the 100% Fibonacci retracement level. However, it may be a while before we get down there. That being said, I also believe that we will target the ¥130 level eventually.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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