GBP/JPY Price Forecast – British pound continues to drift lower

The British pound has drifted a little bit lower during the trading session on Friday, as the “risk off” attitude continues. Ultimately, the market looks to be breaking below the ¥132 level, especially after breaking the bottom of the inverted hammer from the Thursday session. Beyond that, the 50 day EMA is starting to turn lower, perhaps reaching back towards the ¥132 level to offer even more resistance. The market has been very negative for quite some time, and as it is risk sensitive to global and geopolitical issues, it could propel this market lower. However, without a doubt one of the biggest factors will be the Brexit.

GBP/JPY  Video 07.10.19

There are a lot of concerns when it comes to Brexit, as headlines will continue to throw this market back around. All it takes is one headline, tweet, or rumor to have algorithms buying or selling this pair rapidly. Because of this, you need to be very cautious about your position size, as sudden breaking news can cross your account. All things been equal though, it looks very likely that we will continue to drift lower based upon the fact that Brexit is nowhere near being completed, and of course concerns about the trade wars. Ultimately, this is a market that will react to the world issues that seem to be unending at this point. Looking at this chart, the ¥130 level looks to be very likely charged. Rallies will be sold into, but if the market was to turn around and break above the ¥135 level, it would certainly make a statement for a longer-term trend change.

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This article was originally posted on FX Empire

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