GBP/JPY Price Forecast – British Pound Pulls Back Slightly
The British pound initially tried to rally during the trading session on Tuesday, but then rolled over a been to show less than bullish pressure. Ultimately, the 50 day EMA underneath should continue to be support though, so at this point it’s very likely that the market will look to it as an area that buyers may come into play. The previous bullish flag is sitting right there as well, so overall, it’s very likely that given enough time we should see buyers looking for value in that area. All things being equal, if the market were to break above the top of the shooting star like candle for Tuesday, then that would be a buying opportunity as well. Overall, the market then could go looking towards the ¥148 level.
GBP/JPY Video 08.01.20
The market has been grinding its way lower, but it looks as if we are trying to form some type of stabilization move. The British pound of course is going to continue to see a lot of volatility due to Brexit, but at this point it’s likely that any sense of certainty should continue to push the British pound higher. Beyond that, this is a market that is very sensitive to risk appetite so you should keep that in mind as well. After all, the Japanese yen is extraordinarily sensitive to risk as it is considered to be a “safety currency.” The ¥140 level underneath will be a fulcrum of price, pushing the market higher in the form of support given enough time. All things being equal, I am bullish, but I recognize that we need to continue to see the market try to stabilize in the short term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
