GBP/JPY Price Forecast – British pound very noisy against yen on Tuesday

This pair has a bit of a double whammy going against that, because quite frankly it’s not only being held hostage by comments coming out of the Brexit negotiations, it’s also a proxy for global trade and global risk. With the US/China relations getting worse, that’s not going to help either. However, the one thing that is encouraging is how resilient this pair has been. Quite frankly, with all the news going around, you would think that the GBP/JPY pair would be well under ¥140 by now. This tells me that the market sentiment is starting to turn in general, and because of this I’m looking to buy only. It doesn’t mean that we necessarily need to buy and hold, I look at short-term dips as potential value areas that we can take advantage of. With that in mind, I am looking for the opportunity to go long on these dips on short-term support signals.

Eventually, I think we retake the ¥145 level, and then go looking towards the ¥146 level after that. The market will more than likely explode to the upside once an actual agreement is announced with the Brexit, or perhaps even more importantly in this particular case: the US and China start a path toward reconciliation. If we could get both of those things, I get the feeling that this pair would probably gain about 500 pips very quickly.

GBP/JPY  Video 12.09.18