Yahoo Finance GBP/JPY Price Forecast – British pound continues to go lower
The British pound fell during the trading session on Monday to kick the week off, as we continue to have a lot of fear around the world. We did bounce a bit during the European session, but there are still plenty of reasons to think that the market will continue to drift lower. This doesn’t mean we will get a significant bounce, but frankly we are a bit overdue. However, I see a couple of different levels above that could cause some issues. With that in mind, a bounce will be looked at as an opportunity to sell again, not a buying opportunity.
GBP/JPY Video 06.08.19
The market is overextended to the downside and has broken down below the ¥130 level. I believe that the ¥130 level should be resistance on the way up, and most certainly the 20 day EMA, which is colored in green will also offer a significant amount of resistance. It currently is at the ¥132 level, so I think that area will be difficult to break above, and therefore it also catches my attention that we have an inverted hammer at that level, which could show a lot of trouble. Beyond that, ¥135 is also a massive resistance barrier. It’s not until we break above that level that I would start to take a reversal seriously. I know that’s quite far away, but we have been in such a negative feedback loop that it’s difficult to imagine a scenario where this market rallies without the Brexit being in our rearview mirrors.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
