GBP/JPY Weekly Price Forecast – British Pound Collapses Against Japanese Yen

The British pound has gotten hammered during the week as we are starting to see headlines crossed the wire about Brexit again, which if you remember correctly, played absolute havoc with the British pound previously. Because of this, it is going to be prone to make major moves and rather short order, based upon the latest rumor, comment, headline, Tweet, and anything else that you can think of. Because of this, it is going to be crucial to stay small with your trading position and do not try to over lever. Yes, you can make a ton of money with a trade, but you can also lose a lot.

GBP/JPY Video 14.09.20

To the downside it looks like the ¥135 level could be an area of support, but if we break down below there then it is going to open up another couple of hundred points. On the other hand, if we bounce from here, we could go to the ¥137.50 level, and then possibly the ¥140 level. At this point, trying to predict where the market is going to go is essentially guessing, because it is running on real emotion. One thing is for sure though, any time the market start picking up momentum you should follow it, but just for a short amount of time. It is going to be very difficult to trade from the longer-term charts, so at this point I suspect that most of the longer-term traders are probably sitting on the sidelines. If you do choose to use the weekly chart, it is crucial that you cut back your position size drastically.

For a look at all of today’s economic events, check out our economic calendar.