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