GBP/JPY Price Forecast – British pound runs into resistance

The British pound rallied a bit during the trading session on Wednesday against the Japanese yen but found a bit of resistance at the ¥145 level. Overall, the market still looks very shattered, so I think that it’s only a matter time before the sellers come back into this market. Because of this I think that the most prudent action is to sell rallies as they show signs of exhaustion. This is a market that is very sensitive to risk appetite, and quite frankly there’s a lot of risk aversion out there. I think at this point; the market is one that will take a certain amount of patience and should be looked at from more of a longer-term standpoint in the sense that we have a major downtrend line above that continues to push to the downside. I think at this point, it’s very likely that we will continue to see negative headlines coming out about the Brexit, and until that gets fixed, the British pound is going to be fragile.

GBP/JPY  Video 22.11.18

Beyond that, this pair is sensitive to global trade, and of course we still have the major issues between the United States and China, so I think it’s only a matter of time before a negative headline crosses the wires about that situation as well. With that in mind, it makes sense that we will continue to see traders jump to the safety of the Japanese yen over the riskier British pound in this environment.