GBP/JPY Weekly Price Forecast – British Pound Pulls Back Against Japanese Yen at Resistance

The British pound has initially tried to rally during the trading week, reaching towards the ¥139 level. However, the market has pulled back a bit to show signs of weakness, but I do not necessarily have any interest in shorting this pair right now, as I think this will end up being a buying opportunity. The ¥139 level begins a significant barrier that extends to the ¥140 level, so I will be very interested in this pair if we can break above that ¥140 level.

GBP/JPY Video 10.08.20

I anticipate that there will be the occasional pullback in order to offer value, so I am not interested in shorting. However, it may be a bit difficult to buy this pair on the weekly candlestick or timeframe, as I would anticipate a bit of volatility in the next few weeks. By volatility of course, I simply mean that the market is probably going to chop back and forth. The ¥135 level underneath is massive support and therefore something to pay close attention to.

On the other hand, a break above the ¥140 level would be a sign that we are probably going to go looking towards the ¥145 level. We are currently between the 50 and the 200 week EMA indicators, which typically signifies that we may see some sideways action. Furthermore, the world is not quite sure what to do with risk appetite right now which of course is a major driver of this currency pair in general.

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