FXEMPIRE
All

GBP/JPY Price Forecast – British pound pulls back on Wednesday

The British pound pulled back a bit on Wednesday against the Japanese yen, but at this point there is still a lot of impulsive buying underneath. This should continue to provide a little bit of support, but keep in mind that this pair will be very noisy due to the Brexit negotiations.
Christopher Lewis
GBP/JPY daily chart, September 13, 2018

The British pound pulled back a little bit during the trading session on Wednesday, but at the end of the day you have to keep in mind it’s probably more about the Brexit than anything else. Beyond that though, there are concerns about global trade and that will greatly influence what happens next with the pair, as it is highly sensitive to global trade issues, and right now that means noise between the United States and China. That should continue, so that will of course continue to be a problem with this market. However, if we get good news about the Brexit, that will overwrite everything in this pair and send it straight up.

I believe that there is plenty of support near the ¥144 level, and probably even lower than that. Because of this, I look at the short-term pullbacks as potential buying opportunities and position myself accordingly. Ultimately, the market should continue to show itself as one that is very volatile and sensitive to the headlines, but I do think that eventually we will break out to the upside. The ¥142.75 level is now what I’m considering the “floor” in the market, so until then I’m not interested in shorting this pair. Obviously, there are going to be rough days ahead but I think eventually we will find some type of clarity, perhaps in the next month or two when we get certainty about the Brexit. Be careful of headlines.

GBP/JPY  Video 13.09.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US