GBP/JPY Price Forecast – British pound recoversThe British pound rallied a bit against the Japanese yen initially falling at the open though. It looks as if we are going to continue to hover around the ¥138 level, so looking at this chart it looks like we will get more of the same.
The British pound initially fell against the Japanese yen, as the Asian markets sold off. However, it looks as if we are going to continue to bounce around the ¥138 level yet again, and at this point it looks very likely that we continue to see a lot of back-and-forth. After all, this is a market that is highly sensitive to risk appetite, so with that in mind I believe that this market is probably going to be erratic to say the least. In general, this is a market that will continue to see erratic moves at times, but it seems as if unlike a lot of the stock markets and commodity markets, we are slowing down in the currency markets.
GBP/JPY Video 14.06.19
Obviously, the Brexit has a lot to do with what happens in this pair beyond just the simple risk appetite situation, and with signs that the British may be coming to some type of consensus, we may have movement towards the idea of a deal with the European Union. This is very tiring, and therefore the easiest way to trade this market is to simply pay attention to the technical analysis. At this point, if we can break above the ¥139 level I believe that the market will then go to the ¥140 level where there will be even more resistance. However, if we turn around and break down below the bottom of the candle stick for the Thursday session, we probably roll over and go looking towards ¥136.
Please let us know what you think in the comments below