GBP/JPY Price Forecast – British pound continues to fall apart against Japanese yenThe British pound has broken down significantly during the trading session on Friday, and of course Monday has been no different. We have broken down rather significantly. This shows just how vulnerable Sterling is.
The British pound broke down during the trading session on Monday, leaving the ¥134 level behind like it wasn’t even there. We are now reaching towards the ¥133 level underneath, as it is the next obvious big figure target. Beyond that, if we break down below there, the market is likely to go down to the ¥131 level which is the 100% Fibonacci retracement level.
GBP/JPY Video 30.07.19
Rallies at this point should be selling opportunities and of course obvious ones. I think that the ¥135 level will continue to be resistance, just as the 20 day EMA will be. The 20 day EMA, which is pictured in light green, is an indicator that is strong and resistive. I think at this point any time we rally we will probably find plenty of resistance in that area. Ultimately, as long as we are uncertain about the Brexit, and let’s face it – things are even more uncertain than they’ve ever been. With that, it’s very likely that the market will continue to accelerate to the downside, so there’s no need to try to be a hero here.
Ultimately, we need some type of certainty before the trend changes. I don’t see that happening between now and Halloween, which is when the deadline for the Brexit occurs. Quite frankly, I expect to see another huge “flush lower”, but that will probably be the buying opportunity of a lifetime. Obviously though, that’s not happening now and it’s probably not can happen in the short run. I remain a seller.
Please let us know what you think in the comments below