GBP/JPY Weekly Price Forecast – British pound struggles again during the weekThe British pound struggled again during the week, reaching down towards the ¥141 level before bouncing slightly. This is a market that continues to worry about the Brexit and of course risk appetite with geopolitical events, but we are approaching a significant support barrier.
The British pound it certainly had a rough week, losing ground against pretty much every currency that I follow. The Japanese yen of course was going to be no exception, as we went reaching towards the ¥140 level, an area that I think will cause a lot of interest. This market looks likely to find buyers in that region based upon previous attempts, but if we break down below here we could drop down to the ¥137 level rather quickly. This would be a reaction to either something coming out of the Brexit deal, or perhaps some type of geopolitical concern as this pair is very sensitive to those issues.
Otherwise, we could get value hunters coming in at ¥140, but this is a very difficult pair to hang onto right now so most long-term traders are going to ignore that. But we need to see is some type of supportive candle at the ¥140 level to believe in it. A weekly hammer would do the trick, something that we are obviously going to have to wait for it. Short-term traders will more than likely continue to sell short-term rallies that show weakness and failure, so if you are inclined to believe in the ¥140 barrier, my suggestion is to start out small in your position. If we close on the daily chart below ¥140, longer-term traders could perhaps have a play down to the ¥137 level next. This is a market that desperately needs good news coming out of the UK.