Yahoo Finance GBP/JPY Price Forecast – British pound continues to fall against Japanese yen
The British pound fell a majority of the session on Tuesday against the Japanese yen, as we continue to see a lot of volatility and concerns. Obviously, market participants will look at this as a risk barometer as per usual, and with that I think we are probably looking at an opportunity to see some type of bounce, but that bounce should give us an opportunity to sell from a higher level. When you look at the chart, you can see that the 20 day EMA is currently crossing the ¥135 level, and I think that is an area where you can probably see a lot of selling pressure if we do bounce towards that area.
GBP/JPY Video 31.07.19
To the downside, I do believe that we will go looking towards the ¥131 level which is the 100% Fibonacci retracement level from the move higher. We are well below the 61.8% Fibonacci retracement level, and typically that’s what you see happen. Ultimately, I do believe that it is only a matter of time before we see sellers jump in on rallies, mainly because the Brexit is a bigger mess than ever, so I don’t see why anything would change here. Ultimately, I believe the ¥135 level will be massive resistance that it’s almost impossible to break, but even if we did keep in mind that it’s more of a “zone” that extends to the ¥136 level. Because of this, I am cautiously optimistic about shorting this market, but I also recognize that headlines could come out to send British pound into spasms.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
Natural Gas Price Forecast – Natural gas markets continue to look soft
U.S. Core Inflation Ticks Higher, FOMC Meeting Underway, Trade Talks Scuttled
Gold Price Prediction – Prices Rise After BoJ and Ahead of Fed
Forex Daily Recap – 109.02 Resistance Confined Ninja’s Upside as BoJ Plans Further Ease
Natural Gas Price Prediction – Prices Rebound Ahead of Inventory Data
