GBP/JPY Weekly Price Forecast – British pound gets a reprieve against Japanese yen

The British pound rallied significantly during the week after initially falling, as Parliament decided to vote in a “no deal Brexit” blockage measure. That being said though, this is probably more or less going to be a “dead cat bounce” overall.
Christopher Lewis
GBP/JPY weekly chart, September 09, 2019

The British pound initially fell during the week but then rallied significantly to show signs of life again. By doing so it’s likely that the market is going to find a little bit of resistance here at the ¥132.50 level but I think there’s even more resistance at the ¥135 level. Beyond that, the 38.2% Fibonacci retracement level sits right at that level as well. Looking for signs of exhaustion, perhaps on the daily chart, is probably the best way to go when it comes time to start selling.

GBP/JPY  Video 09.09.19

Keep in mind that this pair is highly sensitive to global risk appetite, which is all over the place right now. At this point in time we have gotten a bit of a reprieve due to the US/China trade situation getting a bit better, as they are meeting in October. At the end of the day though, that is not as big of a factor when it comes to this pair, because we have seen those break down and fail before. There is no reason to think that it’s going to change in the short term. Between that and the Brexit, it’s difficult to own this pair with any type of certainty or conviction to the upside. Looking for signs of exhaustion above, especially at the previous mentioned ¥135 level, seems to be the best way to trade this market as we should see a continuation of what has been a very horrific run to the downside.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.