GBP/JPY Price Forecast – British pound trying to find support against yen

This is one of the most risk sensitive pair is in the world, so it makes sense that it would be very noisy. Beyond that, we have the Brexit to worry about and of course the Conservative Party in the UK not being able to agree on anything, mixing all that together gives us a nice opportunity to find people worried about putting money to work. However, I think at this point there is still a substantial barrier at the 144 handle, so I’d be more than willing to short at that level. However, if we can break above there then we could make a significant push towards the 145 level, a psychologically important area for sure.

Currently, I think we probably continue to sell rallies and reach down towards the 140 level, an area that is important on longer-term charts. We are oversold though, so a bounce wouldn’t be much to ask out of this market. If we can get some type of good news coming from London involving the Brexit or perhaps some cohesion out of the Conservatives, we could see a spike in this pair rather quickly. That of course could be a nice buying opportunity but I think if we recapture 145, the market probably turns around for good. I say this because it is important on longer-term charts and of course it would take something rather significant for that to happen in this environment.

GBP/JPY  Video 10.08.18