GBP/JPY Price Forecast – British pound active against Japanese yen on Tuesday

The British pound has exploded to the upside against the Japanese yen during the beginning part of the trading session on Tuesday but continues to struggle just above the ¥146 level. Ultimately, I think that we need to make some type of decision, but this will be a difficult markets to deal with as it is so heavily influenced by risk appetite overall. I believe that the market will continue to focus on things like trade war fears, and of course the overall threat to the global economy as the pair tends to be very risk sensitive.

That being said, the market is in the process of forming “higher lows” which of course is a very bullish sign. If we can break above the ¥146.50 level, it’s likely that we could continue to go much higher. The market at that point would be free to go much higher, perhaps reaching towards the ¥148 level, and that eventually the ¥150 level. The problem of course is that the market is focusing on several different issues at the moment, all of which that could cause a bit of trouble. With this in mind, I anticipate that it’s only a matter of time before the market falls again, as there are far too many headline risks for most traders to be comfortable hanging onto these riskier currency pairs. If we can break down below the previous uptrend line, that should add even more credence to the bearish pressure.

GBP/JPY  Video 04.07.18