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GBP/JPY Price Forecast – British pound continues to soften against Japanese yen

Christopher Lewis
The British pound initially tried to rally during the trading session on Friday, but the downward pressure continues. Looking at the chart, it looks as if the Japanese yen will continue to be one of the major gainers.

The British pound try to rally initially during the trading session on Friday, but then rolled over a bit to show signs of weakness again. Quite frankly I think that we are probably going to see a lot of choppiness, but most certainly a negative bias. This makes a lot of sense though, because we have the Brexit going on and still as clear as mud, but beyond that this pair tends to be a risk appetite barometer as well.

GBP/JPY  Video 24.06.19

With that being the case it makes sense that this pair will fall as we have US/China trade relations still being strained via the trade war, but we now have the United States and Iran flexing at each other. That has people looking for the safety of the Japanese yen against most currencies, and of course with all of the extra noise around the British pound, it makes sense that this market would continue to drift lower.

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The ¥135 level underneath is major support, but quite frankly we have already broken below the 61.8% Fibonacci retracement level so it makes sense that the pair continues to try to wipe out the entirety of the move higher. That suggests a move closer to the ¥131 level, but at this point it would not be overly surprising to see a bit of choppiness because we have fallen so hard and in such a short amount of time. That being said, all it is going to take is one stupid Tweet, or perhaps somebody involved in the elections in London to say something just as brilliant to send this pair much lower.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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