GBP/JPY Weekly Price Forecast – British pound finds support against yen

The British pound initially fell during the week, but turned around to form a hammer, which of course is a very good sign. However, keep in mind that this pair is highly sensitive to risk appetite, and there are a lot of things move in the markets right now that are based purely upon a motion, and a lot less upon fundamentals. Because of this, it’s very likely that this pair will continue to be erratic and skittish, and that should be a warning to traders out there not to have huge positions on. However, I would say that structurally the ¥145 level is a very interesting level indeed.

If this level were to hold, we could bounce as high as the ¥150 level rather easily, but we need some good news to go along with it. In general, if we can break above the ¥150 level, the market is likely to go to the ¥152 level. A break down below the bottom of the hammer though, that would of course be a very negative sign, and perhaps send the market down to the ¥142.50 level, and possibly even the ¥140 level. Remember, this pair is highly sensitive to risk appetite, and that of course is a moving target right now as we have so much out there including the problems between Great Britain and the European Union, trade tariffs, and of course immigration. Be cautious with your trade size is the biggest take away.

GBP/JPY  Video 02.07.18