GBP/JPY Price Forecast – British pound pulled back a bit against the Japanese yen after trying to rally on Thursday

The British pound has had a rough go of it over the last couple of weeks, as rumors coming out of the Brexit negotiations have thrown this currency around. During the session on Wednesday, there was a tweet that someone suggested perhaps the Germans and the British were softening their stance on negotiations. However, this was market manipulation as it was stated shortly afterwards by the Germans that nothing had changed. Welcome to the age of Twitter. Somebody put that out, almost certainly just after buying a ton of British pounds.

After that being said, we are now resting at the gap that kicked off the week. We are probably going to see a range bound market with a slightly negative bias between now and the jobs number in America, which of course can through the markets into a tantrum on its own. I suspect that the market is in somewhat of a holding pattern until we get a little bit more clarity. Because of this, I think range bound trading may work on short-term charts, perhaps using the ¥143.50 level as potential support, but quite frankly it wouldn’t surprise me at all to see that market level gets broken. To the upside, I suspect that the ¥144.25 level will offer resistance, and it’s probably not until we either get some headline about the US/Chinese trade spat or the jobs number that we can get a sustainable move. Obviously, Brexit headlines will help, so there’s always that threat in both directions.

GBP/JPY  Video 07.09.18