GBP/JPY Price Forecast – British pound continues to slop against yen in “risk off” attitude

There are a lot of moving pieces when it comes to “The Dragon”, not the least of which would be the Brexit. There have been varying headlines coming out that have lifted the British pound occasionally, but unfortunately they are typically rumors and essentially people gaming the system through Twitter. Overall, this market continues to show a lot of softness due to the global “risk off” attitude, which is a bit of a double whammy when it comes to this pair. I think we will eventually go looking towards ¥145 level, which of course is a large come around, psychologically significant figure, something that Forex markets tend to be attracted to.

I do believe that there will be the occasional headline that comes out interns this market around, but so far those have been selling opportunities. Longer-term, I believe that we will continue to see a lot of skittish and erratic behavior, at least until we get an agreement with the Brexit. Once we get an agreement with the Brexit, it’s very likely that this pair continues to grind lower, perhaps offering another opportunity to pick up the British pound “on the cheap” and build a longer-term position. I know that’s what some of the larger players have been doing, but quite frankly so far that hasn’t worked as we been in a down trending channel. Longer-term, that strategy probably will work, but in order to start picking up little bits and pieces, you would need to use very little in the way of leverage. For now, ¥145 looks to be the target.

GBP/JPY  Video 24.10.18