GBP/JPY Price Forecast – British Pound Continues to Slump Against Yen

The British pound initially tried to rally during the trading session on Friday but then broke back down against the Japanese yen yet again, as we are reaching towards the ¥135 level. The ¥135 level is of course a large, round, psychologically significant figure, and therefore should attract a lot of attention. This is an area that has seen both support and resistance, so it is worth paying attention to. Another thing that is worth paying attention to is the fact that there was a hammer that had formed from Thursday, so the ¥135 level should be relatively important.

GBP/JPY Video 21.09.20

Above, we have the ¥137 level offering resistance as the last several candlesticks have tried to break above there, but simply could not. I think at this point in time, it is only a matter of time before we break in one direction or another. Keep in mind that this pair is highly sensitive to risk appetite so that is worth paying attention to. If we start to see a lot of fear enter the markets, we could very well break down below the ¥135 level. Furthermore, the Brexit is going to continue to throw the markets around due to the occasional headline or rumor that comes out. Because of this, you are going to have to be aware of extreme volatility coming from time to time, and therefore position size correctly as this market could cause major moves very suddenly. Caution is the better part of valor, and therefore position sizing should be smaller than usual.

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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