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GBP/JPY Price Forecast – British pound sideways ahead of Bank of England meeting

Christopher Lewis
Updated
The British pound while slightly positive during the trading session on Monday against the Japanese yen, but we have also seen quite a bit of resistance near the ¥146 level. That’s an area that should be a bit difficult to overcome, but it would be crucial for the buyers and their success.

The British pound has been slightly positive during the trading session on Monday, as we continue to try to break above the ¥146 level. I don’t think that’s going to happen in the short term though, at least not until we get the Bank of England out of the way. After the meeting on Thursday, we may get a bit of clarity as to whether the Bank of England will be able to raise interest rates going forward. Overall, the market will continue to be very noisy, but if we can break out above the ¥146.50 level, then the market will be free to go much higher. However, as I stated previously I don’t think that happens cleanly until we get some type of announcement out of London.

In the short term, I think we will probably continue to be attracted to the ¥146 level, so therefore it’s likely that we will see buyers on short-term dips, but I would be a bit surprised if we can break above the ¥146.50 level between now and Thursday. If we do, then it would be a bit of a “front running” to the announcement. I suspect that this could be a quiet couple of days in this pair, unless of course we get some type of geopolitical event that moves this market as it is so highly sensitive to risk appetite in general. Expect choppiness.

GBP/JPY  Video 31.07.18

This article was originally posted on FX Empire

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