GBP/JPY Price Forecast – British pound looking for support

The British pound initially fell during trading on Wednesday but found enough support near the ¥138 level, an area that we have seen action at previously, to turn around and bounce lightly. At this point in time it’s likely that we will continue to see a lot of noise, but we may have hit a little bit of an oversold area at this point. I believe that this juncture it’s easier to simply fade rallies that show signs of exhaustion, especially near the ¥140 level if we can get that high.

GBP/JPY  Video 30.05.19

The other side of the equation is of course that we break down below the bottom of the Wednesday session, which could send the market much lower, down to the ¥135 level at the very least as it is the next large, round, psychologically significant figure. Remember, this pair will react to not only all of the Brexit headlines but also the noise coming out of the US/China trade negotiations and situation, as the headlines are necessarily getting any better. If it becomes more of a “risk off” global market, this pair is very likely to roll over and fall rather hard. If it does, we could be looking at a ¥130 print, although I don’t think we fall quite that far unless we get some type of major selloff in stock markets and commodity markets simultaneously. Currently, I think the British pound is trying to find a bit of a range against not only the Japanese yen but all currencies.

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