GBP/JPY Price Forecast – British pound rallies into resistance

The British pound shot higher during the trading session on Monday, showing signs of bullish pressure right off the bat, but also has run into resistance later in the day. At this point, it looks as if the market is trying to figure out whether or not it can break out.
Christopher Lewis
GBP/JPY daily chart, July 02, 2019

The British pound gapped higher during the trading session on Monday, went back and forth after that to cause a lot of volatility and choppiness. That being the case, the market looks as if it is try to break out but it needs clear the ¥138 level to be impressive enough to put money to work. To the downside, I see a significant amount of support, so it’s very likely that we are simply going to chop around this week as it will be rather quiet after the G 20 meeting in Japan, and now the market starts to focus on the employment figures out of the United States.

GBP/JPY  Video 02.07.19

At this point, it’s very likely that market participants are trying to figure out where risk appetite goes, and needless to say there are a lot of concerns and questions about that. Ultimately, if we can break above the ¥138 level, then we will go looking towards the ¥140 level above. That’s an area that has been rather important more than once, so I don’t know that we can break above there without some type of good news coming out of the Brexit, something that we been waiting for to happen for months now. To the downside, the ¥135 level looks very supportive, so if we were to break down below there it could change a lot of things. Until then, the market looks to be very sideways and indecisive. The one thing you can count on is choppiness.

Please let us know what you think in the comments below

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

Top Promotions

Top Brokers

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.
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.