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GBP/JPY Price Forecast – British pound turns around violently on Monday

Christopher Lewis
Updated
The British pound initially gapped lower against the Japanese yen as fears about turkey continue to put a huge “risk off” attitude into the market. However, by the time the Americans came back to work, it looks as Ankara is blinking a bit. Because of this, the pair went straight back up.

The British pound has been the center of the Forex world’s attention lately, and of course this pair is highly sensitive to risk appetite in general. Because of this, it’s not a surprise that when it looked like the Turks are perhaps going to blank a bit over the deal with the pastor, that the most risk sensitive currency pair that I follow spiked higher. That’s not to say that suddenly it’s a great trade to the upside, but clearly there was a bit of relief expressed here.

If we can break above the ¥142 level, we could go as high as ¥143.25 level next. Otherwise, and let’s be honest about this, it wouldn’t take much to spook the market, we would probably role right back over to go looking towards the ¥140 level again. Remember, we not only have to worry about turkey, but we have to worry about global trade, and of course the noise coming out of both the United Kingdom and the European Union as far as the Brexit is concerned. That will have a lot of people concerned in general, and therefore could move this market rather drastically.

A break down below the ¥140 level would be catastrophic and open the door to ¥137.50 rather quickly. Otherwise, if we can continue to rally I think the next major resistance barrier beyond the ¥143.25 level is the ¥145 level as it is of course very psychologically and structurally important.

GBP/JPY  Video 14.08.18

This article was originally posted on FX Empire

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