The British pound initially fell against the Japanese yen on Wednesday but has recovered a bit to reach towards the ¥135 level yet again. With that being said, it looks like we are not quite ready to go anywhere and the 50 day EMA is currently trying to offer a bit of support. To the upside, the 200 day EMA causes some issues, so I think we are essentially going to be in a relatively tight range. Nonetheless, it is worth paying attention to this pair because it is so overly sensitive to risk appetite in general. With that being the case, I like the idea of following right along with the stock markets and everything else that is risk related.
GBP/JPY Video 18.06.20
If we were to break above the highs of the previous session, that opens up the door to the ¥139 level. If we can break above there, and clear the ¥140 level, then it is time to go looking towards the ¥145 level. To the downside, I believe that this market is one that you should be paying attention to on a break down below the lows of the Monday session for a move down to the ¥132 level. Ultimately, I think that we are winding up the momentum for some type of move, but at this point we are still trying to decide which direction that is going to be. You will get an impulsive candle sooner or later, and that is going to be your clue as to where we are going next.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Oil Mixed As U.S. Domestic Production Drops Sharply
- EUR/USD Price Forecast – Euro Continues to Grind Lower
- GBP/JPY Price Forecast – British Pound Continues to Levitate Around Same Area
- S&P 500 Price Forecast – Stock Markets Give It a Bit of a Rest
- Oil Price Fundamental Daily Forecast – Rising Inventory, Fears of Rising COVID-19 Cases Weighing on Prices
- Silver Price Daily Forecast – Silver Continues Attempts To Settle Above $17.50