GBP/JPY Price Forecast – British Pound Continues to Grind Sideways Against Yen

The British pound initially tried to rally during the trading session on Monday but gave back the gains in order to stay in the same tight range that we have been in. The ¥135 level looks to be a bit of a magnet for price, and if you have been paying attention to what I have been saying, the area between the 50 day EMA at the 200 day EMA quite often will be crucial. Right now, we are simply stuck between those two moving averages, and that of course the ¥135 level is an area that is only exacerbating the situation.

GBP/JPY Video 14.07.20

Looking at this chart, I think that if we can break above the 200 day EMA this pair will go looking towards the ¥140 level. If we break down below the 50 day EMA then it is likely we go looking towards the ¥132 level. Between now and then, I would anticipate that this market simply grind back and forth while it tries to build up enough momentum to move in one direction or the other. With this, I am on the sidelines and waiting to see what happens but keep in mind this pair is sensitive to the risk appetite of traders around the world so if markets get hit in that sense, then it will be negative for this pair, just as if we suddenly see a magic “risk on rally” occurs, then that should send this pair higher. Between now and then, we are just killing time.

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