GBP/JPY Price Forecast – British Pound Still Confused Against Japanese Yen

The British pound went back and forth against the Japanese yen during the trading session on Tuesday, as we have gone back and forth rather rapidly. At this point, it shows that there is a lot of concern out there, because this pair is overly sensitive to risk appetite. The fact that the market rallied all the way to the 50 day EMA suggests that there was a major attempt to break out, but we have seen the market fail there, which is interesting considering that the British pound against the US dollar seemed fine. With that in mind obviously something is going on and this pair will quite often show concern quicker and of course danger.

GBP/JPY Video 24.06.20

The ¥132 level underneath has been supportive, and it would be interesting to see whether or not we can break down below there. If we do, then it is highly likely that the market breaks down towards the ¥129 level, possibly even lower than that. On the other hand, if we break above the 50 day EMA then the market is likely to go testing the ¥135 level, and then eventually the 200 day EMA which is above there.

With that, I think the only thing you can probably count on is a lot of choppiness and volatility as the pair is very likely to continue showing how much there is out there as far as concern and uncertainty when it comes to global growth, the British economy, and traders are still attracted to the idea of safety with the Japanese yen.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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