Yahoo Finance GBP/JPY Price Forecast November 9
The British pound continues to try to break out against the Japanese yen but has failed as the ¥150 level proves to be a tough barrier to overcome. I’m not saying it can’t happen, but we need to get decent news out of the Brexit or some type of stabilization between the Chinese and the Americans as far as trade relations are concerned to get a very risk sensitive pair like this to get to the upside. We are overbought at this point though, so a pullback makes quite a bit of sense, perhaps reaching down to the ¥147.50 level, or maybe even as low as ¥145.
GBP/JPY Video 09.11.18
If we did break above the ¥150 level, then I think the market could go much higher, perhaps reaching towards ¥152.50 level, perhaps even the ¥155 level. Ultimately, the market is likely to be explosive once we finally do break out, but it’s unlikely to happen in the short term. The market participants probably won’t be able to hang on to this market going into the weekend, because headlines could come out and get you absolutely crushed if you aren’t careful. Ultimately, this all comes down to the Brexit and the global trade situation which doesn’t look very good. I would keep my position size relatively small, because the volatility could pick up very suddenly. The average trader will probably look to be very cautious going forward in the next few days.
This article was originally posted on FX Empire
