GBP/JPY Weekly Price Forecast – British pound suffers loss for the week against yen

The British pound has initially tried to rally against the Japanese yen level but failed to keep the gains for the week. The ¥145 level is psychologically important, and certainly the center of the lot of action. However, looking at the weekly chart you can see several hammers to the left that have wicks underneath this level. I think that there is plenty of buying pressure underneath, but we need to see some type of good news coming out of the headlines or something to that effect to see this market gain and really take off to the upside. Ultimately, this is a market that I think will find a reason to rally, but we may have a week or so of negativity between now and then.

If we do continue to slide from here, we could go down to the ¥140 level, but I suspect this would probably be with a lot of negativity and perhaps a negative headline coming out of the Sino-American trade talks. If things work out in a favorable light on that front, we could see this market skyrocket to the upside. Ultimately, if things continue to be rocky between the two nations, we could see an unwind of this trade and perhaps even more negativity. Overall, I suspect value hunters are probably going to be looking rather soon at this pair with these low levels. That being said, it’s not can be an easy trade.

GBP/JPY  Video 06.08.18