GBP/JPY Weekly Price Forecast – British pound back and forth against Japanese yenThe British pound has gone back and forth against the Japanese yen during the week, forming a bit of a neutral candle. However, we are below the 61.8% Fibonacci retracement level, which is a huge signal as far as I can tell.
The British pound went back and forth during the trading sessions that made up the week, bouncing from the ¥135 level. This is an area that of course should cause a bit of support, as it is a large, round, psychologically significant figure. If we were to break down below there then it opens the door to the 100% Fibonacci retracement level which is closer to the ¥131 level. That being said, we could break back above the ¥138 level on a daily close, opening up the door to the ¥140 level. I’m not real sure how that happens though, because quite frankly this is a risk sensitive pair.
GBP/JPY Video 24.06.19
Looking at this chart, it’s obvious to see that there is a lot of negativity out there, and as a result you should probably expect to see exhaustion on short-term bounces. To the downside, the ¥131 level should be massive support based upon the huge hammer that touches that level. To the upside, I would be very skeptical until we can get some type of Brexit decision, and until then it’s very unlikely that this pair could hang onto gains.
Looking at this chart, there’s no reason to think that risk appetite is suddenly going to go higher, so even if we were to get a resolution between the US/China situation, there are a multitude of other reasons to pay attention, as the Brexit by itself could cause issues. This is all about the fact that the British pound should underperform against the Japanese yen in relation to other currencies.
Please let us know what you think in the comments below