GBP/JPY Price Forecast – British pound breaks lower

The British pound broke down a bit during the trading session against the Japanese yen on Wednesday as we continue to see a lot of negativity. The question is now whether or not we continue to go much lower?
Christopher Lewis
GBP/JPY daily chart, May 09, 2019

The British pound broke down a bit during the trading session on Wednesday, as there has been several shocks to the marketplace as of late. Overall, I’m getting ready to wipe out the bullish flag that I have marked on the chart, and I’m starting to think more along the lines that the pair could grind a bit lower. If we recapture the ¥144 level though, then it shows what a mess we are actually in, and it could send this market back to the ¥147 level. In the short term though, I suspect that the ¥142.50 level will be supported and perhaps targeted.

GBP/JPY Video 09.05.19

A move below that level could send this market towards the ¥140 level, which is a major round figure obviously. In general, I suspect that this is a marketplace that is going to continue to be very noisy, and as a result it’s going to be very dangerous. I would keep my position size very small, as the risk of loss is great in these types of markets. Beyond that, the headlines out there will continue to throw markets around as the Americans and the Chinese get together for negotiations. With that being the case it’s going to be very difficult to hang on to a position, especially if it’s large. With that in mind, it’s very possible that you may be better off simply avoiding this pair, as the next few days are going to be wrought with danger via twitter and of course headlines on the news.

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