GBP/JPY Price Forecast – British pound rallies but fails against Japanese yenThe British pound rallied a bit during the trading session on Tuesday but seems to be skittish about taking on the ¥140 level. With that being the case, I think it makes sense that we could roll over a bit but I’m not looking for a meltdown, simply a continuation.
The British pound initially tried to rally during the day on Tuesday but found a bit of resistance just below the ¥140 level, an area that I suggested could be rather resistive. Because of this, I think that the market will roll over from here and continue to drift lower. Looking at the chart, you can see that there has been a lot of technical damage done as of late and this of course is a very sensitive pair when it comes to not only the Brexit, but global risk overall. With market participants pain attention to the US/Chinese trade war, it makes sense that perhaps we could see a lot of volatility in this pair. That’s nothing new for this market anyway, and with the way things have been as of late it wouldn’t be much of a surprise.
GBP/JPY Video 09.01.19
Ultimately, if we can break above the ¥140 level that would be a very strong sign but I do not expect to see that happen anytime soon. For me, it looks very likely that we are going to continue the downtrend that we had seen, and I anticipate that this should continue to be a market that is waiting for some sign of conclusion or good news coming out of London with the breakup from the European Union. If we get that, then this market could turnaround but until then out of all the yen related pairs, this will probably be one of the major underperformers.