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

The British pound has initially dropped during the trading session on Tuesday but then continue to rally a bit as we are still reeling from the mass confusion involving the Brexit. This being the case, it’s going to be difficult for traders to get a grasp on anything substantial.
Christopher Lewis
GBP/JPY daily chart, September 11, 2019

The British pound initially tried to pull back during the trading session on Tuesday, but then turned around to break towards the ¥133 level. At this point, if we can break above that level, then it’s possible that we could then go to the ¥135 level. That is an area where I would expect to see a lot of exhaustion and massive resistance, so therefore it’s likely that signs of exhaustion will be jumped on at that point.

GBP/JPY  Video 11.09.19

Keep in mind that this market is highly sensitive to risk appetite, and therefore as we see more confusion, it’s likely that the pair will drop. The short term though, it seems like traders are willing to give the benefit of the doubt to the Americans and the Chinese perhaps speaking rather soon, so ultimately it’s going to be a short-term rally followed by some type of bad news that sends this market right back down. Not only is this a wrist sensitive market, but with all of the nonsense going on around the Brexit right now it’s difficult to imagine a scenario where this market rallies for the longer-term. The British pound of course is going to continue to suffer at the hands of the back and forth with politicians, so keep this in mind that at any moment we could get some type of announcement that pummels this market right back down. It is because of this that I look for exhaustion to sell, and have no interest in trying to buy.

Please let us know what you think in the comments below

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

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US