GBP/JPY Price Forecast – British pound falls to find major support against yen

The British pound has fallen rather hard during the trading session on Thursday, reaching down towards the ¥145 level, an area that I have been talking about for some time. So far, it appears that market participants are willing to defend this area, so I think that we will probably find this pair going back towards the ¥146 level. However, if we make a fresh, new low, that’s a very negative sign and could send this pair looking towards the ¥142.50 level, possibly even the ¥140 level of the longer-term.

Keep in mind, the pair tends to be highly sensitive to risk appetite globally, so that of course is something that we will have to pay attention to. Pay attention to stock markets, futures markets, and of course headlines and what they could mean for global trade. If we can get some type of calming of tensions between the Chinese and Americans, that could lift this pair, but then again if we get some type of resolution to the Brexit, that could also send this pair much higher. I believe that we are going to find buyers in this pair, mainly based upon the strong reaction at the ¥145 level, but I also recognize that it could be extraordinarily volatile, and you should always keep in mind that there is the alternate scenario. This may end up being a nice value play for longer-term traders, if you are patient enough and allow the market to move around as it needs to.

GBP/JPY  Video 03.08.18