GBP/JPY Price Forecast – British Pound Continues To Kill Time Ahead Of The ElectionThe British pound went back and forth during the trading session on Thursday against the Japanese yen as we await the election result in the United Kingdom. Simply put, we have rallied into the election with a specified result in mind.
The British pound has gone back and forth during the trading session on Thursday as we await the election results. At this point, it’s very likely that the market will be waiting for some type of reaction to the election. Quite frankly, the Tory victory has already been priced in significantly so it would not be surprising at all to see this as a “sell on the news” type of event. That being said though, I think that the ¥140 level could offer a nice buying opportunity if we stabilize there. Otherwise, if we get a Labour Party victory it could break this pair down significantly.
GBP/JPY Video 12.12.19
To the upside I believe that the ¥145 level is the next target, and then perhaps even the ¥149 level based upon the Fibonacci retracement studies. I like the idea of finding value on dips and continuing the overall move to the upside. Given enough time I also believe that the market probably will continue to see plenty of volatility after the election, but in the short term it seems as if we are simply killing time. We will be moving on the latest headline, so keep that in mind. It’s probably best to look for value on dips going forward assuming that the Tories win Parliament. If they don’t, look out below this market will probably continue to go much lower, perhaps reaching down towards the ¥135 level. With this, I remain bullish longer term but at this point I would like to see a better price.
Please let us know what you think in the comments below