GBP/JPY Price Forecast – British pound back and forth against yen
The British pound rallied against the Japanese yen initially during the day on Thursday, but then rolled over at the ¥141 level. That’s an area that continues to be very important, as it was previous support. By rolling over the way it has, I believe we are still looking towards the ¥140 level, and that it is only a matter of time before we break down below it. If and when we do, the market is very likely to struggle in general, offering an opportunity to sell yet again on the next leg lower. If that’s the case, I anticipate that we will probably go looking towards the ¥139 level, and then even as low as ¥137.50 given enough time.
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Overall, I anticipate that we will see sellers on rallies, at least until the Brexit situation gets under control or perhaps until we get some type of resolution with trade wars. I think the pair is destined to break down, and it’s only a matter of time but it is going to take a certain amount of momentum to do so. It is because of this that we could see a couple of bounces in short order, only to finally break down after the momentum has picked up and more importantly we have collected enough sellers. Ultimately, I do believe this pair will end up lower over the next several weeks.