GBP/JPY Price Forecast – British pound continues to drift lower

The British pound continues to drift lower against the Japanese yen during trading on Thursday, as we clearly have a massive barrier ahead of us at the ¥140 level. However, it’s likely that the British pound will be a bit quiet in the interim, as we are still trying to sort our way through the Brexit process.
Christopher Lewis
GBP/JPY daily chart, January 11, 2019

The British pound fell a bit during the trading session on Thursday, slicing through the ¥138 level, before bouncing slightly a little later in the day. However, the onerous is still on the buyers, as although they’ve shown some stability as of late, the reality is we still haven’t taken out the nasty candlestick that sent us so much lower. That coincides nicely with the ¥140 level, so until we break above there I still think rallies are probably to be sold. With that in mind, this is a marketplace that will continue to be very choppy, but I think favors lower levels.

GBP/JPY  Video 11.01.19

This of course would change immediately if the Brexit is agreed upon, or perhaps in the wake of the US/China trade relations breakthrough. There was a bit of positive news coming out of the meetings this past week, but there was nothing concrete decided upon, so it’s very likely that we will see a certain amount of “wait-and-see” attitude. With that in mind, I think the downside is looking the more likely direction, but I don’t think we are going to see a meltdown like we did a couple of weeks ago. Fading short-term rallies continues to work, as we are Road support underneath. That being said, be cautious about your entries and keep your position size a little bit lower as uncertainty is still a major factor in the marketplace right now.

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

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.
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.