GBP/JPY Weekly Price Forecast – British pound back and forth against Japanese yen

The 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.
Christopher Lewis
GBP/JPY weekly chart, June 24, 2019

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.