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GBP/JPY Price Forecast – British pound hugging support

By:
Christopher Lewis
Updated: May 10, 2019, 17:30 UTC

The British pound continues to go back and forth against the Japanese yen at a crucial level. This isn’t much of a surprise, as we are awaiting results of the US/China trade talks. With that being the case, it’s very difficult to for coast anything but we can look at a couple of levels.

GBP/JPY daily chart, May 13, 2019

The British pound went back and forth against the Japanese yen during the trading session on Friday, as we are hovering just above the ¥142.50 level, an area that has been important more than once. The fact that we formed a bit of a supportive candle during the day on Thursday is a good sign, but we have gone back and forth as Donald Trump has been tweeting about the Chinese trade negotiations. Machines read this, and then become “risk on”, or “risk off.” Overall, this is a market that continues to show a lot of jitters, but this is an area where we could see a bit of a bounce.

GBP/JPY  Video 13.05.19

The alternate scenario of course is that we break down below the bottom of the Thursday candle, which would open the door to further losses. At that point, I would anticipate that the market probably goes down to the ¥140 level over the next several days. However, if the support continues to hold and we can break above the candle stick highs from the Thursday session, then the market is very likely to go looking towards the ¥144 level which should be the beginning of resistance.

With all of the drama going on with the US/China trade relations, we haven’t even discussed the Brexit. Brexit has kind of been put in the back burner, but an errant headline can cause problems there as well. Keep your position size small.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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