GBP/JPY Price Forecast – British pound rallies against Japanese yen

The British pound rallied against the Japanese yen during trading on Friday, breaking above the ¥143 level. This is a psychologically important number for the short term trader, because it’s where we had seen a bit of resistance. It’s a minor level, but it is an important victory as the British pound has been so beaten down for so long. This pair tends to move with risk appetite overall, it was stock markets behaving reasonably well during the session, it makes sense that this pair shows that sentiment overall. I think at this point, it’s obvious that the market participants are starting to feel better about risk appetite, and as a result willing to step out onto the risk spectrum.

I currently see the ¥142.50 level as short-term support, and I think at this point you should be thinking of the ¥145 level as the next major target. That’s an area that will be important on longer-term charts as well, so expect a lot of volatility if we get there, but at the end of the day I think it’s far too important of a level for the market to ignore. I believe that there are a lot of longer-term traders starting to hang onto the British pound now, because it is historically cheap against almost everything. Once we get some type of certainty with the Brexit, the British pound will probably be THE currency to own. I believe that there are a lot of people trying to front run that move right now.

GBP/JPY  Video 27.08.18