The British pound has initially tried to rally during the trading session on Tuesday but found resistance again near the ¥139 level. By pulling back the way we have, it looks as if the market is trying to cause some type of selloff. That being said, I do not really care that it is following, then simply offers value going forward. I think that the 200 day EMA, pictured in black, should be a nice buying opportunity. Below there, we also have the psychologically and structurally important ¥135 level, so that something worth paying attention to as well.
GBP/JPY Video 05.08.20
To the upside, I believe that the ¥140 level will cause some resistance, but once we break through there, I think that it becomes obvious that the pair goes looking towards the ¥145 level. This is an area that is extraordinarily busy, so it makes quite a bit of sense that we would see a lot of push and pull going forward. We probably need to build up the necessary momentum to break out so it makes quite a bit of sense that short-term traders will continue to go back and forth. I think at this point in time it could move with risk appetite, but at the end of the day pay attention to the GBP/USD pair, because it will give you the idea of the overall strength of the British pound itself. If it starts to rise, that should have a bit of a “knock on effect” over here.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Price Forecast – Crude Oil Markets Continue to Put Traders to Sleep
- Silver Price Daily Forecast – Silver Stays Above The Support At $24.00
- KKR Posts Flat Q2 Earnings, Assets Under Management Jump 8% to $222 Billion; Target Price $40
- Gold Price Forecast – A Potential Spike High This Week
- The Slow S&P 500 Grind Higher Is Still On
- E-mini S&P 500 Index (ES) Futures Technical Analysis – Bulls Take Breather as They Await Positive News