GBP/JPY Price Forecast – British pound gapped lower against yen

The British pound gapped lower during the trading session on Monday, sending the market down to ¥146. At this point, the market looks as if it is going to go lower, perhaps reaching towards the ¥145 level, an area that of course has a certain amount of psychological as well as structural significance. So far, the market has broken down towards the top of the major bullish candle from about seven sessions ago, so it makes sense that we would stutter a bit here. However, it’s not going to take much to push this market down as it is sensitive to Brexit headlines and of course negativity.

GBP/JPY Video 13.11.18

You can see that I have a gold box at the ¥150 level, because I believe that is a longer-term signal. At this point, I would anticipate a lot of support underneath the ¥145 level, perhaps extending down to ¥143. If we were to break down below that level, then the market almost certainly will continue to go lower towards the ¥140 level. In the meantime, I think the only thing that you can probably count on is a lot of volatility, as this pair typically does give us that anyway. If we turn around and break above the top of the candle stick for the Monday session, then I think we will make another run towards the ¥150 level, which has been rather massive in its resistance. Breaking above there of course opens the door to much higher valuations, as it would be a major break out.