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

The British pound pulled back against the Japanese yen during trading on Tuesday, after initially rallying a bit during early trading. The market of course has bounced of the last couple of days so I think that the market is trying to make a bit of a comeback. The resistance above is probably going to be difficult.
Christopher Lewis
GBP/JPY Midday chart, October 30, 2018

The British pound has rallied a bit initially during trading on Tuesday, but then pulled back to test the ¥143.50 level. This is a market that of course moves with the ebbs and flows of risk appetite, and of course the Sino-American trade relations. On the four hour chart attached to this article, you can see that we have been trying to make a bit of a comeback, but I think there’s so much in the way of uncertainty out there that it’s going to be difficult to sustain a longer-term rally.

GBP/JPY Midday Video 30.10.18

If we can break above the ¥145 level, then I think the market goes to the ¥146 level which of course is an area where we had seen some selling. A break above that level of course could send this market much higher, perhaps to the ¥147.50 level which was the scene of selling before that. I believe that the market continues to show a lot of volatility, and quite frankly in this world of uncertainty, this pair is going to be especially vulnerable to sudden shifts in sentiment. Beyond that, we also have the headlines from the Brexit that will continue to throw this pair around as per usual. If we were to break down below the lows, then I think the market could unwind all the way down to the ¥142.50 level, and then ¥140 after that.

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