GBP/JPY Price Forecast – British pound rallies after initial pull back against yen

The British pound has initially pulled back against the Japanese yen in early trading on Thursday but turned around to show signs of life again. The ¥149 level above is a significant barrier, but once we clear that area I think that we will go looking towards the ¥150 level next. The previous downtrend line on the daily chart is just below and I think that also offers a significant amount of psychological support. Remember, this pair will be highly sensitive to trade negotiations between the United States and China, but at the same time I think there is probably even more emphasis on the Brexit, which I believe that the negative headlines have already seen their full effect. After all, every time we get a negative headline, this pair and anything involving the British pound rallies after a short and sharp pull back. This shows resiliency, something that you want to see in a longer-term trade.

As for myself, I like buying small positions initially, and then adding to them as things work out. Overall, I believe that we can break above the ¥150 level, we will continue to go much higher, adding to the “buy-and-hold” strategy that I think a lot of people are starting to employ when it comes to the British pound as it is so historically cheap. That being the case, be patient, and add as you are proven correct.

GBP/JPY  Video 28.09.18