GBP/JPY Price Forecast – British pound struggles again

The British pound fell hard against the Japanese yen as a bid to safety came back into play about 9 AM New York time. Institutions in Europe began to seek safety, and therefore we started to see a turnaround. However, it’s very possible that we are going to turn right back around to find the market back in the consolidation area that we had been in recently. If that’s going to be the case, then it would make sense for this market to reach towards the ¥145 level, and then the ¥146 level. Not much is changed truthfully, so at this point I would read too much into the selloff.

GBP/JPY  Video 08.05.19

However, if we were to break down below the ¥144 level, it’s very likely that we could see trouble and perhaps a move down to the ¥140 level. Keep in mind though we still have the bullish flag underneath, but at the same time it seems as if we are trying to form a descending triangle. The main take away here: we still have a lot of uncertainty in the market, and that of course makes this an almost impossible pair to hang onto for any significant amount of time. Ultimately, this is a short-term traders type of market and therefore paying attention to the 200 PIP range that I have just drawn out is probably the best way to go about it as you can find yourself in a lot of trouble rather quickly.

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