GBP/JPY Price Forecast – British pound continues to fall against Japanese yen

The British pound has fallen again during the trading session on Friday, as we reach towards the ¥140 level. Rallies at this point in time should be sold, as we continue to see failures. Exhaustive candles after short-term rally should be an opportunity to pick up the Japanese yen again, which should be one of the leading currencies in 2019 due to the global risk out there with geopolitical concerns, Brexit, and trade wars, and many other things. Quite frankly, global growth is slowing down, and that is a bit of a perfect storm for the British pound fall against a safety currency like the yen.

GBP/JPY  Video 24.12.18

If we do break down below the ¥140 level, then it opens the door to a move towards the ¥138 level, and possibly even lower than that. Rallies at this point should be treated with suspicion, and I believe that the ¥145 level above is the “ceiling” in the market. The 200 day moving average is just above that level as well, and that of course could cause a lot of problems for buyers as well. Overall, I don’t see a route higher for this pair until we at the very least get a Brexit deal, which doesn’t look very likely between now and March the way things are going. If we do get a Brexit deal, that could be the catalyst to form the bottom in this pair.