GBP/JPY Price Forecast – British pound bounces after Supreme Court ruling

The British pound has rallied a bit during the trading session on Tuesday after the court ruling that allows for Parliament to reopen in the United Kingdom. However, it is worth stating that the bounce hasn’t exactly been overwhelming. In other words, it’s very likely that this market will continue to be bearish longer term and why shouldn’t it? There are a lot of concerns out there when it comes to global growth and of course this pair is always a very sensitive to risk appetite in general.

GBP/JPY  Video 25.09.19

The Japanese yen being a safety currency of course attracts a lot of attention, but at this point it’s well beyond the United Kingdom that we need to look at to get an idea as to where this pair could go. The US/China trade relations of course have driven money into the Japanese yen as well. This pair of course has the “double whammy” of not only risk sensitive action, but the noise that keeps coming from the Brexit itself. Because of this, it will more than likely be very volatile, but I am the first to admit that the rally after the announcement hasn’t been overly impressive when looking at the action of the last week or so. Because of this, it’s very likely that we will continue to see choppiness but I think the 38.2% Fibonacci retracement level and the round figure of ¥135 both probably cause issues for the buyers.

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