Yahoo Finance GBP/JPY Price Forecast – British pound recovers slightly against yen
The British pound recovered slightly during the trading session on Monday, recapturing the ¥141 level. We have bounced from the psychologically and structurally important ¥140 level, so that of course is a very good sign. However, there is a lot of resistance above and I think that this is a market that isn’t worth bothering with. If you want to play the Sino-American relations, it might be a much purer clean play to express your opinion in the AUD/USD pair, or even the AUD/JPY pair, as it eliminates the risk of Brexit headlines coming out and causing issues. Ultimately, I believe that this pair will continue to cause issues in this pair, and it will decouple a bit from some of the other yen related pairs as a result.
If we were to break down below the ¥140 level, that would be a very negative sign, and could send this pair much lower. I believe that rallies will be sold eventually, so you need to be very cautious when dealing with them. All things being equal, we could get a short-term pop, but I think that’s all it will be, a short-term pop. Because of this, I’m very cautious about putting money to work in this market, but the breakdown would be far too interesting for me to not take advantage of. At that point, I think the floodgates would open and there would be an obvious trigger.
GBP/JPY Video 21.08.18
This article was originally posted on FX Empire
