GBP/JPY Price Forecast – British pound bounces against Japanese yen

The British pound bounced against the Japanese yen during trading on Wednesday, but we still remain in a very significant consolidation area for the British pound as we await some type of solution to the Brexit, something that isn’t going to happen anytime soon.
Christopher Lewis
GBP/JPY daily chart, June 27, 2019

The British pound continues to go back and forth as we have no clear direction on what’s going to happen with the Brexit. However, this pair is most certainly in a downtrend although oversold from a longer-term standpoint. I think at this point we are very likely to see this market simply churn as we are in the summertime and there are a lot of concerns around the world. Quite frankly, there’s no reason to think that suddenly there’s going to be a huge “risk on” move, as there’s no reason to think that the United States and China will work things out in the short term. Is very likely that the markets are simply trying to figure out what to do at this point, and I anticipate that short-term back and forth trading is probably about as good as this gets.

GBP/JPY Video 27.06.19

That being said, we are very likely going to see difficulty establishing some type of directionality unless of course we suddenly either get a definitive Brexit resolution, or a definitive US/China resolution. Until then, this is a market that will continue to be jittery, and more than likely best traded between the ¥135 level and the ¥138 level. We continue to churn overall, as we await a catalyst. This could be a very long and slow summer but as we get closer to the end of it, there should be quite a bit of opportunities for those who use things like stochastic oscillators, and other types of indicators.

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