GBP/JPY Price Forecast – British pound continues the bounce around

The British pound has initially fallen during the trading session on Thursday but ran into quite a bit of trouble for the sellers as we turned around to bounce towards the psychologically and structurally important ¥135 level. That being the case, the market is very likely to continue to see noisy action, as there is a zone of resistance above that extends to the ¥136 level. Ultimately, it’s not until we break above the ¥136 level that any rally at this point becomes remotely impressive.

GBP/JPY  Video 26.07.19

If we did break above the ¥136 level, it’s very likely that the market would try to reach towards higher levels, but until then we have a lot to prove. Remember, the British pound is a mess due to a whole plethora of reasons out there, all based around the Brexit. Since we have no way to quantify whatever noise and nonsense comes out of that, it’s almost impossible to place a trade with any type of confidence in favor of the British pound. Beyond that, the Japanese yen is considered to be a “safety currency”, and let’s be honest here: there are plenty of reasons for traders to go out and look for safety right now.

Ultimately, this is a market that is going to continue to be noisy, but I just can’t make an argument for buying the British pound anytime soon as we have a lot of nonsense to chew through over the next several months. That being said, it’s very likely that we will eventually roll over and continue to drift lower.