GBP/JPY Price Forecast – British pound continues to press for bottom

The British pound initially fell during trading on Tuesday but then turned around to recover against the Japanese yen. The ¥130 level has offered quite a bit of resistance recently though, so it’ll be interesting to see whether or not we can break out.
Christopher Lewis
GBP/JPY daily chart, August 28, 2019

The British pound has initially fallen during the trading session on Tuesday but found enough support underneath the turn around and reach towards the ¥130 level again. This is a good turn of events for the British pound but nothing has changed longer-term to suggest that the British pound should suddenly be a currency you look to buy. I believe at this pair will offer a nice selling opportunity after a short-term rally; you can even make an argument for a bit of a rising wedge. If the rising wedge kicks off, we could break down towards the lows again.

GBP/JPY  Video 28.08.19

The ¥126 level underneath is the beginning of significant support, and I think it will take quite a bit of momentum to finally break that level. Once we do though, then I fully anticipate that we go looking towards the ¥120 level. Keep in mind that we are getting relatively close to the Brexit and of course more importantly the deadline, and at this point there is no likely deal coming. Eventually that starts to jump into the market again, and there should be a nice selling opportunity. The ¥132.50 level features a small cluster that coincides quite nicely with the 50 day EMA, giving us an opportunity to start selling based upon the fact that this is also a risk barometer, and of course the global markets out there aren’t exactly instilling confidence these days. All things being equal I think it’s simply a matter of waiting for an opportunity to start selling again.

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
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.
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.