GBP/JPY Price Forecast – British Pound Falls Against Japanese Yen

The British pound has found itself testing the ¥141.50 level as Wall Street opens, but it looks as if the Americans are going to be positive during the day, so the question then becomes whether or not it is simply a recovery bounce after a major sell off, or if it is something that will stick. After all, the Chinese markets haven’t even been opened this week, and even though the coronavirus has taken most of the headlines, the reality is that it has been a bit of an overreaction in a rush for safety. With that in mind, it makes quite a bit of sense that the market will continue to see a lot of noise in general. The pair is of course sensitive to risk appetite, so keep that in mind.

GBP/JPY  Video 29.01.20

All things being said though, risk appetite in general has been positive and a lot of the pundits in New York are suggesting that perhaps this may end up being a bit of a buying opportunity for those who are willing to step in and pick up value. If that’s going to be the case, then it’s likely that this pair will rally right along with stock markets around the world. However, if we were to break down below the ¥139 level that would be an extraordinarily negative sign. Between here and there, there should be plenty of support based upon the previous bullish flag and therefore one would have to think that there are people out there willing to step in and get their toes wet.

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