GBP/JPY Price Forecast – “The Dragon” runs into resistance

So there’s a saying that markets are forward-looking, and roughly 6 months out. If you ever needed an example of that, the GBP/USD pair has been one. It has been anticipating a Brexit deal for some time now, and buyers continue to pick up the British pound “on the cheap.” This of course has an effect in this pair as well, but we also have to pay attention to the USD/JPY pair, which is running into major resistance as well, as the US dollar is the major benchmark against which the world’s currencies are measured. That being said, I do think that both of those pears break out to the upside sooner rather than later, and therefore I think that there is going to be a nice buying opportunity in this pair relatively soon.

If we can break above the ¥148.50 level, then I think were free to go to the ¥150 level. The rumor about Teresa May not liking the Irish border proposal sent the market lower, but we are starting to see the British pound stabilize in general rather quickly, normally a good sign that there’s no real momentum to the downside. I think that we will find value below, especially near the ¥147 level, or you can simply keep a small position to the upside and add on the break out. Either way, I don’t have any interest in selling this pair as the British pound doesn’t have anybody left to sell it at this point anyways.

GBP/JPY  Video 20.09.18

This article was originally posted on FX Empire

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