GBP/JPY Price Forecast – British pound facing resistance

The British pound pulled back a bit during the day on Monday to kick off the week, as the Japanese yen strengthened overall. However, we have seen a bit of a bounce from the lows, so it looks likely that we are going to continue to see the ¥140 level offer resistance. The 140 young level of course is psychologically important, but it is also an area where we had broken down from. Because of this I think that the market will more than likely find reasons to sell off given enough time, and that will be especially true if we see the stock markets roll over due to earnings season. Remember, this pair is extraordinarily sensitive to risk overall, so keep that in mind.

GBP/JPY  Video 15.01.19

The resistance runs all the way to the ¥141 level, so it’s not until we break above there that I think we are free to go much higher. We would need some type of US/China trade deal for this market to break above there, or perhaps some type of solution to the situation with the Brexit, but I think that we are more than likely going to see the British Parliament bowed down the Teresa Bay agreement, so therefore I would suspect that we probably have the possibility of negativity. However, if we did break above the ¥141 level, then I think we could probably see this market go to the ¥143.50 level. Regardless, keep your trading positions a bit smaller this week.