GBP/JPY Price Forecast – British Pound Continues Range Bound

The British pound has initially tried to rally during the trading session on Thursday but gave back the gains as we continue to see this market go back and forth between the ¥138 level and the ¥135 level underneath. This is a market that is obviously going to move back and forth with risk appetite as per usual, and in general this is a market that is looking very tight. This makes sense, because there are so many different things going on at the same time that it is difficult to imagine a scenario where people are comfortable getting to exposed anything.

GBP/JPY Video 23.10.20

Looking at this chart, you can see that the 50 day and the 200 day EMA both are relatively flat, and it looks to me like the market is going to continue to struggle for direction. When you have the Brexit situation out there still causing a lot of issues and of course the entire world waiting to see whether or not the United States the stimulus, it makes sense that this pair has nowhere to be. Beyond that, you have to worry about whether or not coronavirus is going to continue to shut down economies around the world, including the United Kingdom.

With all that going on at the same time it makes sense that people are not jumping into this with both feet because it typically represents a market that people buy when they want to be exposed to risk appetite. Because of this, expect a lot of choppy and news driven behavior. Obviously, there can always be a headline that comes out about Brexit that throws a monkey wrench in the entire situation.

For a look at all of today’s economic events, check out our economic calendar.