GBP/JPY Price Forecast – British pound continues to find resistance at the same place

The British pound try to rally during the trading session on Monday but ran into a lot of trouble at the ¥135 level, an area that of course is a large, round, psychologically significant figure as well.
Christopher Lewis
GBP/JPY daily chart, July 25, 2019

The British pound rallied after initially pulling back during the trading session against the Japanese yen on Wednesday as we continue to see a lot of volatility when it comes to all things involving the British pound. After all, we have the Brexit, the emergence of Boris Johnson, and a ton of other issues when it comes to the United Kingdom. With this being the case and the Japanese yen be in a safety currency, it makes sense that we have pulled back, especially when there are so many geopolitical concerns out there.

GBP/JPY  Video 25.07.19

More importantly, the market has been in a major downtrend, and even though we have broken above the shooting stars that had been forming lately, we still are showing signs of failure. The question now is whether or not we can continue to go higher. If we can break above the top of the candle stick for the session on Wednesday, then it’s likely that we could go to the ¥136 level. That’s an area that’s also resistive as well. I believe it’s only a matter time before the sellers come back due to the fact that it has been so massively negative. At this point, I think it makes sense that we continue to fade rallies, as the market almost certainly will find a reason to fall from here. The market continues to be very choppy and erratic, but that is nothing new for this pair. Regardless, I have no interest in trying to fight the trend.

Please let us know what you think in the comments below

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