Yahoo Finance GBP/JPY Price Forecast – British pound takes a beating on Wednesday
Breaking through the ¥144 level during the early hours of Wednesday, GBP/JPY looks all but broken at this point. There is some supported down at the ¥142.50 level, but ultimately I believe that we will probably continue to go even lower. The breakdown during the early hours on Wednesday was significant, and this is a market that continues to show signs of fear. There’s a big fear that the United Kingdom will leave the European Union without a deal, almost as if there are no WTO regulations in place. Nonetheless, markets tend to run on a motion more than anything else during these times, and you should keep in mind that the volume is probably lower than usual due to vacation season.
That being said, I think rallies at this point continue to offer selling opportunities, and I would not be a buyer of this pair now that significant support has been eviscerated. The next possible opportunity for buyers to get involved is probably closer to the ¥140 level, but of course if we get something crossing the headlines that suggests there will be a deal, this market will turn around and go parabolic. The British pound is probably going to be the most interesting currency to trade as we get closer to the deadlines, because it’s either going to skyrocket or fall apart. There’s probably no in between on this one. Because of this, position sizing should be small because headlines can cross the wire at any time to make for a significant move.
GBP/JPY Video 09.08.18
This article was originally posted on FX Empire
