GBP/JPY Price Forecast – British pound fails to impress on weekly open

The British pound of course continues to be soft in general, as the Brexit continues to cause issues. Beyond that, the market is testing the ¥135 level, an area that of course is a large, round, psychologically significant figure. That level will attract a lot of attention but at the end of the day it looks as if we will continue to pressure it.

GBP/JPY  Video 16.07.19

If we were to get a daily close below that level, it’s very likely that we can go down to the ¥131.50 level, which is the 100% Fibonacci retracement level. Ultimately, that could be a rather significant figure and it would be based upon risk appetite more than anything else. The British pound of course has to worry about the Brexit, as the headlines will continue to cause issues. Ultimately, we are deciding where to go next with this rather soon, and that of course will have a huge effect.

At this point, if we can break above the ¥136.50 level, then we could see the market going up to the ¥138 level next. Overall, the choppiness that we see in this area could be the beginning of a turnaround but quite frankly it is going to be difficult to hang on to any position at this point. There are major concerns around the world as far as the global economy is concerned, and that could have people running towards the Japanese yen overall, hence affecting this market. We are still in a downtrend though, so the upside is probably somewhat limited.

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