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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.

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