GBP/JPY Weekly Price Forecast – British pound breaks down during the week

The British pound formed a shooting star during the previous week against the Japanese yen at the 38.2% Fibonacci retracement level and the ¥135 barrier. At this point, the market looks as if it does want to try to turn around and test that level again, before perhaps breaking down. Keep in mind that the market is highly sensitive to risk appetite in general, and of course that’s all over the place right now. We also have concerns about the Brexit, as there are so many conflicting headlines there as well. Ultimately, this is a market that should turn around to show signs of trouble above, based upon the fact that it’s only a matter of time before something comes out to cause some problems. All things being equal, I do like the idea of fading rallies, but if we were to break above the top of the shooting star from the previous week, it’s likely that we could go higher.

GBP/JPY  Video 30.09.19

To the downside, the ¥130 level should be rather supportive, and could make a nice target based upon the shooting star. All things being equal, I do not like the idea of putting a lot of money into this market right now though, because it will obviously go back and forth quite a bit drastically at times. We are in a downtrend though, so it makes it easier to short this market than anything else.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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