GBP/JPY Weekly Price Forecast – British pound continues to fall against Japanese yen

The British pound continues to struggle against the Japanese yen, as a bit of a “risk off” move. There are tensions between the United States and China involving trade, and it’s likely that the market will continue to be very difficult to handle.
GBP/JPY weekly chart, December 10, 2018

The British pound continues to fall against the Japanese yen during the trading this past week, as the ¥145 level has given away. The market breaking down below the weekly candle stick should send this market much lower, perhaps down to the ¥140 level. I think that the descending channel of course is still in effect, especially considering that we have so much concern about the US/China trading spat. Beyond that, we also have the Brexit which of course isn’t a done deal and there are still high possibilities to cause disruption there as well.

GBP/JPY Video 10.12.18

Going even further, you can see that the global growth picture isn’t exactly dreamy either, meaning that we could have a bit of a selloff in this pair due to a bit of a “risk off” move. Rallies at this point are to be sold, at least until we break above the ¥150 level, which would be a huge sign for the buyers. Ultimately though, I think it’s only a matter time before the sellers get involved and push this market lower. I think the only thing that would change the trajectory of this pair right now is whether the Brexit is agreed-upon and finally settled. Right now though, it looks that we could have a “no deal Brexit” coming, and that could send this market even lower. To the downside, I believe that the ¥140 level will be very supportive, as it has been several times in the past.

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