GBP/JPY Price Forecast – drama hurts British pound yet again

The British pound struggled against the Japanese yen during most of the session on Wednesday, breaking down below the ¥147 level. There is a significant amount of demand just below that handle, so there is the possibility that we get a bit of a bounce. However, I would not bank on that, and I think it would be much more likely to see buying pressure closer to the uptrend line which I have at roughly ¥146.50 below. I think this market continues to be very sensitive to the drama surrounding Teresa May and the Brexit right now, so therefore it’s very difficult to get overly excited about buying.

Beyond that, the pair does tend to be very sensitive to global risk appetite in general, and that of course is waning at the moment. However, I do believe that eventually we should get a nice buying opportunity based upon value, hopefully somewhere near the uptrend line below as it would be a nice longer-term opportunity. If we do break down below the uptrend line and the ¥146 level, then I think this pair will break down rather significantly. This has been a brutal couple of days for this market, but at this point I think we are starting to test serious support so I do expect a deceleration of the downtrend in the next couple of days. Expect volatility, enter slowly, and only add to your position once you been proven correct. This is probably one of the most dangerous pairs to trade currently.

GBP/JPY  Video 19.07.18