GBP/JPY Price Forecast – Sterling finds supportThe British pound fell again during the day on Friday in the Japanese yen terms, as we reached towards a significant support area in the form of ¥146 and uptrend line. At this point, I think that we are trying to build up enough momentum to bounce, but I also recognize how precarious the situation could be.
The British pound found a bit of support during the trading session on Friday, after falling rather hard of the last couple of days. There is a lot of support and demand at the ¥146 level, and it looks as if there is an attempt to make a bit of a stand here. Beyond that, there’s a nice uptrend line and I think that we could see buyers jumping into this market to take advantage of a cheap British pound.
On the other side of the equation is the fact that the USD/JPY pair has been falling rather hard during the day, and of course is the yardstick by which you measure Japanese yen strength. This causes a bit of a “push pull” type of situation, and I think that might be what we see for most of the Friday session, but I do see the potential for a rally on Monday. If we can break above the ¥146.75 level, then I think the market is more than likely going to go looking towards ¥147.50 level. Otherwise, if we were to break down below the ¥146 level on a daily close for the Friday session, I think that the market is all but sold on the idea of going down to the ¥145 level after that. Expect volatility, but there is a certain amount of value to be had here and I think traders are looking at that right now.