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

The British pound went back and forth during the trading week, showing a little bit of negativity against the Japanese yen. That’s not surprising considering all of the headlines that are going on around the world, as this is a very sensitive market when it comes to risk appetite. This is a market that has pulled back the last couple of weeks, after a very impulsive move to the upside. If you look at the area on the chart that I have highlighted, there is a massive hammer from the yen flash crash that we recently had. I believe at this point there is a ton of support underneath just waiting to see Price come back down to those levels to start buying again.

GBP/JPY  Video 18.02.19

I believe that the Brexit headlines will of course continue to throw this market around, as we continue to have a lot of drama coming out of London. At the end of the day, I think that this comes down to getting some type of agreement there before moving to the upside for a sustained move. I do believe that the real risk is to the upside at this point rather than the down, because quite frankly there can’t be that many people left to sell the British pound at this point. Expect a lot of choppiness, but I’m looking for support, especially near the ¥140 level which should be crucial as it is the top of that massive hammer candle.

Please let us know what you think in the comments below