GBP/JPY Price Forecast – the British pound recovers slightly
The British pound initially pulled back a bit during the trading session on Tuesday, as we have reacted to the “risk off” attitude due to the currency manipulation situation. However, the ¥130 level has offered resistance as we have pulled back. At this point, I believe that the market is trying to consolidate and perhaps look for a move going forward. If we can break above the ¥130 level, then the market could go looking towards the ¥132 level after that as we have a massive inverted hammer at that level as well. Beyond that, we also have the 20 day EMA reaching to lower levels as well.
GBP/JPY Video 07.08.19
All things being equal, it looks like we are going to continue to go much lower, perhaps down to the ¥127.50 level. All things being equal though, I think that the market is likely to continue to show signs of exhaustion every time we rally, and perhaps continue the downtrend overall. The British pound of course will continue to struggle due to the Brexit overall, and on the other side of this equation we have the Japanese yen which of course is a “safety currency”, but at this point I think that the market continues to see a lot of volatility and of course negativity. However, the market is a bit overdone, so don’t be surprised at all if we see some type of significant move to the upside that then turns around and gets absolutely squashed.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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