GBP/JPY Price Forecast – British pound falls again on Friday

The British pound fell again against the Japanese yen during the trading session on Friday, reaching down to a fresh, new lows. This is obviously a very negative sign, and of course the British pound has also broken down against most other currencies. I think we continue to see the British pound get punished for lack of clarity coming out of its own government, plus the potential dangers of the Brexit. Beyond that, this pair is highly sensitive to the trade war as it is highly sensitive to risk appetite in general. Keep that in mind as you trade this market, because quite frankly it’s a situation where until we get some good news, it’s probably going to be difficult to get long of this market. I do believe that there’s more risk of a move to the upside due to shock than down, simply because so many people have sold. One of the things that I think had This market from breaking down even further is the fact that it was Friday.

I believe that the 140 young level underneath is massive support, and I would expect a serious fight in that area. If we were to break down below the ¥140 level, the market could go much lower. Obviously, the trend is down so short-term rallies are probably going to continue to be sold in this environment. I would not try to fight the trend right now, but eventually we should see a reversal.

GBP/JPY  Video 13.08.18