GBP/JPY Price Forecast – British Pound Running Into Resistance and Familiar Level

The British pound has rallied against the Japanese yen during the early hours on Wednesday but continues to find trouble at the ¥135 level. This is an area that has been a bit difficult to overcome and has caused resistance more than once. Having said that, we also can point out that there is a bit of an uptrend going on as the recent lows have been higher consecutively.

I believe that we are at a significant decision point right now, because the ¥135 level, the 50 day EMA, and the 200 day EMA are all in the same neighborhood. If that is going to be the case, then it is highly likely that we will see a lot of noise and difficulty in this area. This is not to say that we cannot go higher, we clearly can but we are going to have a bit of a struggle.

GBP/JPY Video 09.07.20

As long as we are between these two major moving averages, there are a plethora of things to be concerned about as far as momentum is concerned. With that being the case, I think that we will see some chopping trading, which makes quite a bit of sense considering that we do not really know what to do next. Ultimately, this is a market that I think will move right along with risk appetite, which seems to never give up, despite the fact of what we are seen around the world.

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This article was originally posted on FX Empire

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