GBP/JPY Price Forecast – British pound looking for support against yen

The British pound fell right out of the gates during the trading session on Thursday but is approaching a major psychologically significant point. With that in mind, we could get a bit of a bounce rather soon.
Christopher Lewis
GBP/JPY daily chart, May 17, 2019

The British pound continues to drift lower during the trading session on Thursday but has found a little bit of solace in the idea of the ¥140 level. This is an area that should continue to find plenty of interest, because of the fact that it is a large, round, psychologically significant figure. Beyond that, it is also the 50% Fibonacci retracement level, which is also something that will catch the eye of a lot of traders. In general though, I think that it is going to be a rocky road and you need to keep an eye on the fact that risk appetite is a very fickle beast these days. If that is going to continue to be the case, this is a pair that could be rather choppy.

GBP/JPY  Video 17.05.19

Having said that, pay attention to risk appetite around the world, perhaps the stock markets, commodity markets, and the like. We also have to worry about geopolitical situations, as they are very fluid as well. Looking at the longer-term picture though, it’s very likely that we will continue to see a lot of volatility, so keep your position size relatively small. If we do rally this point I suspect that we could go to the ¥142.50 region, although a break above there would take a series of good announcements in my estimation. A break down below the ¥140 level, then we probably go down to the 61.8% Fibonacci retracement level which is closer to the ¥138 level. Either way, expect danger.

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