GBP/JPY Price Forecast – pound wipes out most of the gains this week

The British pound has broken through to the downside, looking for the impulsive move to be repealed. However, I think that if we bounce from the ¥143.50 level, this could be an excellent buying opportunity. However, if we wipe out that impulsive candle that started this entire move, this could be a very negative sign, perhaps breaking down rather significantly. Overall, I think that the market will be very jittery, and I think most of this selling could continue due to the idea of Chinese and American negotiations breaking down. We will have to see what happens next, but right now it looks like things are about to get worse, which could be the reason this market breaks down. However, from a technical analysis point of view, we are approaching which should be a rather significant support level.

I think we will see what the market thinks about rumors of a no Brexit deal once we reached towards the ¥143.50 level, and if we leave that in our rearview mirror, the market should certainly break down rather significantly. At that point, I think that the market could be looking at the ¥142 level, and then the crucial ¥140 level. This has been an extraordinarily volatile week, and shows just how nervous the markets are, hanging on every comment and Tweet coming out of Brussels and London. Quite frankly, negotiators need to get their jobs done.

GBP/JPY  Video 03.09.18