GBP/JPY Weekly Price Forecast – British pound tests major support against Japanese yen

Looking at the weekly candle stick, you can see that there is a lot of negativity. However, we have not broken down through the major support level underneath, at least not at the time of this writing. If we were to break down below the ¥144 level rather significantly, that opens up the door to much lower pricing, perhaps down to the ¥140 level. Otherwise, if we were to bounce from here and clear the ¥145 level, then I think we could go to the ¥148 level. That would be a return to simple consolidation on the whole.

GBP/JPY  Video 29.04.19

In general, this is a market that that is highly sensitive to risk appetite, but with the lack of a Brexit deal, I believe that the British pound is going to continue to struggle a bit. In general though, looking at this chart it looks as if we could get a bit of a drift lower, but eventually it’s only a matter time before the whole Brexit deal gets negotiated, and once it does I believe that the British pound will be one of the strongest currencies out there, at least in an initial knee-jerk reaction after the certainty that this market so desperately needs. That being said, if we break down below the support level, we could unwind down to the ¥140 level rather quickly, assuming that it coincides nicely with a break down in financial markets overall. After all, this market collapses every time there’s a huge “risk off” move. If it isn’t simultaneous with a financial sell off, then this market will more or less grind lower, negating the bullish flag that I’ve been talking about.

Please let us know what you think in the comments below