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GBP/JPY Price Forecast – British Pound Sideways Against Yen

Christopher Lewis

The British pound has gone back and forth during the trading session on Monday as traders start to weigh whether or not there is going to be a rate cut at the end of the month by the Bank of England with very anemic GDP figures. At this point, the market has been grinding a bit lower but there is a significant amount of support just below. The 50 day EMA should offer a bit of support, so it’ll be interesting to see what happens in that general vicinity. While the market has been a bit a bit sluggish during the trading session on Monday, but ultimately this is a market that seems to have a lot of support underneath, as seen from the previous bullish flag. Breaking through that bullish flag would be very difficult, but if we did slice through the ¥139 level, that would be a very negative sign.

GBP/JPY  Video 14.01.20

With that in mind I believe that the market will probably find buyers as we drift towards the ¥141 level again, but if the market does break above the highs from the previous couple of sessions, that could kick off a move much higher. Remember, this pair is highly sensitive to risk appetite, so if there is more of a “risk on” move, that should drive this market towards the highs again. Otherwise, expect it to drift lower, and test a lot of these major areas below which I see is a roughly 200 PIP range.

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This article was originally posted on FX Empire