GBP/JPY Price Forecast – British pound recovers slightly against Japanese yen

The British pound initially fell against the Japanese yen during the trading session on Thursday but turned around to bounce rather significantly. That of course is a good sign, and it looks as if we are going to go testing a major figure just above.
Christopher Lewis
GBP/JPY daily chart, July 19, 2019

The British pound has initially fallen during the trading session on Thursday but turned around to break above the top of the shooting star on Wednesday. This is typically a good sign and would even have me buying this market as the shooting star and has now become a “inverted hammer.” However, the ¥135 level is a significant barrier, as it was significant support previously. Because of this, I believe that it is still likely that we will find sellers given enough time. Signs of exhaustion, even on the short-term chart could be thought of as selling opportunities.

GBP/JPY  Video 19.07.19

The British pound obviously has a lot of problems when it comes to the Brexit as there is no certainty going forward, except for the reality that we are getting close to a “no deal Brexit.” That being said, it will continue to cause a lot of issues with Sterling, so therefore we should be paying attention to headlines, but we also have to worry about the overall risk appetite of the markets.

If we break down below the bottom of the candle stick, then it confirms that we are going to go much lower, perhaps down to the ¥131.50 level. However, if we were to break above the ¥135 level I’m not a buyer, rather I am waiting for areas above that I can sell from such as the ¥136 level, and the ¥137.50 level. Going forward, we may eventually get a buying opportunity but I think we are still weeks, if not months away from that.

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.