GBP/JPY Price Forecast – British pound looking for momentum

The British pound initially fell against the Japanese yen in a bit of a “risk off” move, but as you can see we have turned around a bit to form a somewhat supportive looking candle. Nonetheless, we are sitting just below a major resistance barrier in the form of the ¥138 level, and with the jobs number coming out of America on Friday it’s very likely that we will see some type of volatility due to the risk appetite of traders overall. With all of that in mind, I suspect that we will get a lot of choppiness.

GBP/JPY  Video 07.06.19

However, the one thing you should pay attention to is that we are most certainly in a downtrend. Yes, it’s true that we are oversold and that we could bounce significantly from here. However, it’s clear that there are still a lot of questions when it comes to the British pound and the Brexit, so there is still a dark cloud overhanging this market in the meantime.

Ultimately, this is a pair that sees a lot of resistance at ¥138, followed by ¥140. The fact that we don’t have any conclusive answers to the Brexit situation, until shown otherwise, we should assume that there are plenty of reasons for this market to eventually go lower. Beyond that, we are below the 61.8% Fibonacci retracement level, which is always a very negative sign for the longer-term. Any bounce at this point will have me on the sidelines and waiting for signs of exhaustion to take advantage of.

Please let us know what you think in the comments below