GBP/JPY Price Forecast – British pound pulls back against Japanese yen

This is a pair that is very sensitive to risk appetite so keep that in mind. It’s also the crosscurrents of the GBP/USD pair, which is currently pulling back a bit to find support, and the USD/JPY pair which is trying to break out to the upside. Because of this, there is a lot of noise in this pair but it also makes it one of the more volatile ones that you can trade.

GBP/JPY  Video 06.03.19

As you can see on the chart, I have a bullish flag drawn and it looks like we have in fact kicked it off to the upside quite a bit. However, according to the poll on the bullish flag, it’s very likely that we will be aiming for the ¥155 level, but that isn’t to say that we will get there right away. Beyond that, headlines tend to move this market rather rapidly. What I would like to see is the S&P 500 break out to the upside because it gives you an idea that the “risk on” attitude is still out there.

Beyond that, the market will move back and forth due to the US/China trade relations, as the Japanese yen of course is a proxy for Asian. That being said, it’s very likely that the pair will be very choppy so be very cautious about putting too much money to work initially, but if you can handle wild swings, we may be able to build up a larger position.

Please let us know what you think in the comments below