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GBP/JPY Price Forecast – British Pound Bounces from Major Support Level

Christopher Lewis
·2-min read

The British pound has rallied significantly during the trading session on Monday as traders came back from the weekend. Ultimately, the market has more of a “risk on” feel to it during the trading session, so it makes sense that we bounce. Furthermore, we had reached a major support level and of course had been sold off rather drastically over the last several sessions. Ultimately, I do think that it is only a matter of time before we sell off again, but we may have to bounce as high as the 50 day EMA in order to find selling.

GBP/JPY Video 23.06.20

On the other hand, if we break down below the lows of the trading session for Monday, then it is likely that we simply slip down to the ¥130 level. Furthermore, we could even drop as low as the ¥129 level which is an area that had seen a lot of support. Ultimately, I do not have any interest in buying this pair, not after what we have seen during the last couple of weeks.

I believe that the ¥135 level would be massive resistance, because we have seen both support and resistance previously, and of course we have seen the reaction to the large, round, psychologically significant figure. With that being the case, I suspect that we will eventually pay the rallies are looking for signs of exhaustion to jump on, especially later in the week has been the profile for risk over the last several weeks.

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This article was originally posted on FX Empire

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