Yahoo Finance GBP/JPY Price Forecast – British pound breaks down against Japanese yen
The British pound has broken down against the Japanese yen again, as we continue to see concern about the Brexit and global trade. At this point, I believe that this is a British pound story more than anything else. When I look around at the Japanese yen, I recognize that although it has strengthened slightly, it’s exacerbated in this pair as the British pound has been so difficult to hang onto. I do believe there is a buying opportunity eventually, but I would need to see a four hour candle close above the ¥146.50 level before I would be willing to put a bit of bunny to risk.
Alternately, if we find support near the ¥145 level, then I think I could be a buyer there as well but I also recognize that would be a bit of a risky move, so I certainly would do it with a small amount of trading capital as the risk is simply too high in this market. Even though it does look very negative, I don’t necessarily want to short this pair because the headlines could come and send this market straight to the upside again. The British pound is highly sensitive to these headlines, so keep that in mind. However, I think what we are starting to see is markets accepting the fact there may not actually be a deal. In that scenario I would expect one huge flush, and then value hunters to come in after that. However, we have a long way to go before that happens.
GBP/JPY Video 23.10.18
This article was originally posted on FX Empire