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

The British pound initially tried to rally during the trading session on Monday, but then spent the rest of the week grinding lower. Quite frankly, this should not be a huge surprise considering that the Japanese yen is a safety currency and of course we have a lot of concerns when it comes to the British economy. The United Kingdom is likely to be locked down much longer than many other economies around the world, and furthermore there are a lot of concerns when it comes to the Brexit situation which is still out there and waiting to rear its ugly head again.

GBP/JPY Video 27.04.20

Furthermore, the market broke down below the ¥132 level earlier in the week, which was a major support level. Now it looks like we are ready to go looking towards the lows again, although it should be noted that markets are basically trading on emotion more than anything else right now, so do not be surprised at all if there is a sudden move. That being said though, it clearly favors the downside and it should be noted that the previous weekly candlestick ended up turning into a “hanging man”, which is a bit of a negative sign as well. I do believe that this pair will go lower and look towards the ¥130 level, but the question is whether or not we have to sell this pair on a breakdown below ¥132, or will we get the opportunity to fade some type of rally towards the ¥133.50 level? Either one of those trades are appealing to me.