GBP/JPY Price Forecast – British pound finding support

The British pound has found a bit of support at the ¥142.75 level during trading on Tuesday as the level has recently seen a lot of buying pressure. At this point, it’s hard to tell whether it’s going to be simple consolidation or if it’s going to be something much bigger. The overall attitude of the market continues to be one that shuns risk, but we have fallen so far in the first couple of days of the week that it’s quite often a reactionary move to the upside that we will see. Beyond that, there is a gap that has yet to be filled, something that almost always happens in the end. If we were to break above that gap, the market could go much higher. Currently, I think that the ¥142.50 level underneath will be a crucial floor in the market, and if that breaks down, we could see this market go as low as ¥140.

The market continues to move on to major things. The first thing of course is the Brexit, as people are concerned about the political theater going on in London, as well as the results of the final resolution as it could be something rather nasty. However, I think as soon as we get some type of certainty, the Brexit will become a thing of the past, and we will continue to go higher longer term. Beyond that, the second reason of course is the global trade spat between various countries and the United States, most notably China. As long as that is a problem in the market, this pair will probably struggle to go higher for any length of time. However, that gap could get filled.

GBP/JPY  Video 05.09.18