Yahoo Finance GBP/JPY Weekly Price Forecast – Reddish Pound Rallies From Extreme Lows
The British pound has initially pulled back during the week, only to turn around a break back above the ¥130 level, and even as high as ¥133 by the end of the week. By doing so, the market looks as if it is going to try to form a bit of a base in this area, and perhaps try to reach towards the ¥137 level above. Furthermore, the ¥140 level is also a potential target based upon the overall consolidation that we have been in.
GBP/JPY Video 30.03.20
That being said, keep in mind that the pair is extraordinarily sensitive to risk appetite so that could come into play also. Great Britain of course is on lockdown, and the Japanese yen considered to be a safety currency will all come into play at this point. Ultimately, a bounce from here does make some sense but that doesn’t necessarily mean that it’s going to be the easiest thing in the world to take advantage of.
If we do break back below the ¥130 level, then I would anticipate that the market is going to go looking towards the lows, which should be well supported based upon recent history. A breakdown below the candlestick from the previous week would be very negative and certainly open up the door to the ¥120 level. At that point, one would have to wonder how long it would take the Bank of Japan to get involved, because by that time the USD/JPY pair would almost certainly be under ¥100, something that the central bank pays quite a bit of attention to.
This article was originally posted on FX Empire
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