GBP/JPY Price Forecast – British pound breaking major resistance

The British pound has sliced through the ¥140 level, an area that has been important more than once. I believe that the pair is of course going to continue to struggle against the backdrop of global concern, and therefore I think that we will eventually break down through this area significantly. When you look at the longer-term descending channel, the ¥140 level isn’t as important. Obviously, there is going to be a lot of noise in the background, but I do think that the way we have seen so much volatility and headline risk out there that this is a pair that is almost impossible to rally for any significant amount of time.

GBP/JPY  Video 28.12.18

At that point, I think the ¥138 level is likely to be tested, as it is an area of support in the past. Rallies at this point are selling opportunities as well, and I believe that the ¥142 level would be a target for sellers to come in and jump down from there. I have no scenario in which a willing to buy this pair, because I believe that the risk appetite is all but dead at this point. This pair also has to deal with the Brexit, which of course is still far away from being resolved, and therefore the British pound continues to be one of my least favorite currencies. It seems as if every time the pound tries to rally, another headline comes out that weighs upon the currency. Ultimately, this is a market that has been very negative for a long time, and as a very much in a downtrend.