GBP/JPY Price Forecast – British pound pulls back slightly
The British pound has pulled back slightly during the trading session on Thursday, as the ¥135 level has offered a certain amount of resistance. There is the psychological aspect of that number, and of course the 38.2% Fibonacci retracement level sitting right there that will cause quite a bit of an issue. There is a significant amount of noise above all the way to the 200 day EMA, which sits at the ¥137.50 level.
GBP/JPY Video 20.09.19
The market move recently has been a bit parabolic so it would make sense that we pull back from here, reaching down towards the ¥132 level, perhaps even the ¥130 level. Keep in mind that the Brexit situation continues to cause a lot of issues for the British pound as there are so many unknown variables still to this day that it is difficult to imagine a scenario that the market suddenly takes off to the upside. At this point, the market participants will continue to show quite a bit of fear, and the fact that we have been a bit parabolic recently suggest also that we do need to pull back a bit. It’s almost as if the market is standing on a legend just needs a little bit of a “push” to make its move.
One of the big influences of course will be the US/China trade situation which continues to be a moving target as well. One would have to think that eventually it’s only a matter of time before some type of negative headline kicks this thing over.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
