GBP/JPY Price Forecast – British Pound Pulls Back Against Yen

The British pound initially pulled back during the trading session against the Japanese yen as PMI figures out of the European Union had more of a “risk off” feel to them. By pulling back a bit, we tested the bottom of the range, but it looks like we may get an opportunity to range trade in the short and sustained area. The ¥138 level looks to be rather supportive while the ¥140 level looks to be rather resistive. With this being the case, it makes quite a bit of sense that we go back and forth and simply buying the short-term dips. I do think that it is only a matter of time before we break out to the upside, and if we can clear the ¥140 level, then the market may be able to go much further.

GBP/JPY Video 24.08.20

To the downside, if we were to break down below the ¥138 level, we could see this market reach down towards the ¥137 level, possibly even the ¥136 level. Ultimately, this is a market that runs on risk appetite more than anything else, and as a result you should be paying attention to other markets at the same time. Ultimately, I do not have any interest in shorting this market, I simply look for buying opportunities as we find more value here and there. Looking at this chart, it is likely that we are trying to find quite a bit of momentum. In the meantime, I think this is simply a matter of short-term choppiness before we get the bigger move.

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