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GBP/JPY Price Forecast – British Pound Rallies Towards Familiar Level

Christopher Lewis
·1-min read

The British pound rallied significantly during the trading session on Monday to kick off the week, as we continue to see a lot of noise in this general vicinity. The 50 day EMA and the 200 day EMA both have come into the picture to show significant resistance in of course a bit of hesitation as the moving averages are both very flat. The size of the candlestick is of course relatively bullish as well, but ultimately, we are in an area of congestion and that should be paid close attention to.

GBP/JPY Video 20.10.20

The pair is of course very risk sensitive so that is something worth paying attention to as the risk appetite of traders around the world will continue to see things a bit different. Looking at this chart, it is easy to see that we have been in a bit of a range for a while so having said that this is likely to be a scenario where we have a lot of back and forth going forward, because quite frankly there are far too many things out there that could cause major issues in the short term. With this, expect “The Dragon” to be very noisy.

Unfortunately, we have to worry about Brexit and the occasional headline that is going to be coming out, which of course will throw a bit of a wrench into the works at times, but in the end this is a pair that I think is going to continue to bounce around between ¥138 above and ¥135 below until something more substantial happens.

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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