GBP/JPY Price Forecast – British pound looking for buyers

The British pound has fallen during most of the trading session on Wednesday, reaching towards the ¥135 level. That’s an area that is a large, round, psychologically significant figure, so it makes sense that we would have a bit of a reaction to this area. The question is whether or not we can turn things around or if will just simply recruit? At this point, we are most certainly in a negative trend but when you look around at the Japanese yen related pairs, we are starting to see the Japanese yen softened a bit. Unfortunately for the British pound though, it has the Brexit and such to worry about and quite frankly that is a situation that has not gotten any clearer.

GBP/JPY  Video 04.07.19

That being said, if we can bounce above the top of the range for the trading session on Wednesday, then we could go looking towards the ¥138 level above. That could be the beginning of a bottoming pattern, but right now that might be a bit much to ask out of this pair. However, if we were to break below the ¥135 level that would be a significant break of the support, that could open the door down to the ¥131.50 level.

If that happens, it will probably coincide with either something UK specific, or perhaps a major “risk off” event. That’s always a possibility, and even more so as of late. Keep in mind that the Japanese yen is also considered to be a “safety currency”, so the US/China situation could come into play as well.

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