GBP/JPY Price Forecast – British Pound Continues to Press Japanese Yen

The British pound has rallied again against the Japanese yen during the trading session on Monday to kick off the week and show signs of life again. Ultimately, this is a pair that is sensitive to risk appetite so paying attention to the stock market will probably continue to be the best way going forward to figure out where this could go. At this point though, I do believe that the market is showing more signs of strength and weakness, so therefore an attempt at the 200 day EMA does make a certain amount of sense, which is closer to the ¥136 level. If we can break above that level, then it is likely we go looking towards the ¥140 level given enough time.

GBP/JPY Video 21.07.20

To the downside I believe that the 50 day EMA also is something worth paying attention to as it has offered significant support. I think you are looking at a market that is trying to recapture the bullish pressure, and the fact that we did break the highs of the last few sessions does suggest that perhaps the buyers are starting to gain a little bit of momentum. With that, I do like the idea of buying this pair and I do not have any interest in shorting this market, at least not right now. If we were to break down below the 50 day EMA, that could cause some issues, but right now we have not seen that be an issue.

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