GBP/JPY Price Forecast – British pound falls hard against yen
The British pound fell rather hard during the trading session on Tuesday during the European session, crashing towards the ¥147 level as we continue to hear bickering about the Irish border. Quite frankly, the British pound has shown that every time it falls hard based upon headlines, it ends up being a buying opportunity. I don’t see this as being anything different, and at this point I feel that it’s only a matter of time before we rally. That’s not to say that it’s going to be easy to hang onto a trade to the upside, but certainly the real danger is to the upside and not to the downside.
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If we rally from here, I anticipate that the market will go looking towards the ¥148.75 level again, perhaps even higher. If we were to break down, I think that a move below the ¥147 level could send this market down to the ¥146 level next, followed by the ¥145 which is massive in its implications. I believe that the uptrend is still intact, we have just simply been consolidating after a relatively impulsive move to the upside. With that in mind, understand that these headlines that come out occasionally end up being buying opportunities, and it seems that the British pound the simply wants to go higher, and given enough time I don’t see why it doesn’t as it is historically cheap against most currencies around the world. The well-publicized demise of the United Kingdom has been a bit overdone.