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

The British pound continues to go back and forth against the Japanese yen which makes quite a bit of sense considering we have so much in the way of risk out there right now. Remember, this pair will fall if there is more of a “risk off” attitude out there, and therefore it’s going to struggle to rally.
Christopher Lewis
GBP/JPY daily chart, August 26, 2019

The British pound has gone back and forth during the trading session on Friday heading towards the central bank statements coming out of Jackson Hole. That being said, I think really what people are looking for is whether or not there is going to be more or less risk. The Chinese have retaliated against US tariffs, so that of course has people concerned. Beyond that, we also have the Brexit out there, which of course isn’t getting any better anytime soon. With that being the case, it will weigh upon the British pound anyway. Because of all of this I think there’s only one way to play this market, simply looking for signs of exhaustion to sell after short-term rallies. With that, I am someone who has to be very patient in order to take advantage of the longer-term trend.

GBP/JPY  Video 26.08.19

To the upside, the 50 day EMA is starting to grind towards the ¥132.50 level, which features a micro cluster of trading action as well. That being the case, I would be very interested in some type of exhaustion candlestick in that area and would be more than willing to take advantage of it. If we break above there, then the ¥135 level would be targeted. All things being equal, I don’t have any interest in buying this pair unless there is some type of resolution to the Brexit. Quite frankly, if I want to play the “risk on” trade, I’d be more apt to buy NZD/JPY or perhaps CAD/JPY.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US