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

The British pound has drifted a bit lower during the trading session on Friday, reaching down towards the support level underneath that continues to be crucial. I believe that the market will continue to be very noisy, as this pair tends to be so sensitive to risk appetite in general. At this point, I believe that the market participants continue to be moved back and forth due to headlines coming out around the world, and I also believe that we are essentially pressing a “zone” of support that extends down to the psychologically important ¥145 level. If that’s the case, I anticipate that we could get a bounce from that area as well. In short, I believe that selling is possible, but you need to be very cautious in this region as certainly large order flows will be paying attention to the big handle.

If we do rally from here, I believe that the ¥146.50 level is the major resistance barrier to get over. If we can get beyond that, then the market is free to go much higher. However, I suspect that we are more than likely going to need some type of positive headlines coming out of the currency war or trade war situation as it would give us a lot of hope that we could avoid some type of global slowdown. Nonetheless, keep your position size small and do not trade in size until we get some type of impulsive and clear move.

GBP/JPY  Video 30.07.18