Yahoo Finance GBP/JPY Weekly Price Forecast – British pound neutral against yen
The British pound has gone back and forth during the week, essentially settling on a somewhat neutral looking candle. It’s been a wild ride, but it looks as if some of the fear that crept into the market earlier during the week has been abated. At this point, it looks like the ¥150 level continues to be very resistive, and that of course isn’t a huge surprise. If we can break above that level then I think the market could go much higher. If we break down below the bottom of the candle stick for the week then I think we have further to go to the downside, perhaps down to ¥145, possibly even ¥142.50 after that. It would of course have something to do with a huge “risk off” move, but I think the way that the market is closing out the week is somewhat encouraging, so I would suspect that we may see a little bit of value hunting coming back into the fray.
This pair is of course very sensitive to the Brexit, so if we get some type of resolution to that in the near term, or at least make significant progress on the Brexit, that should be good for the British pound. It’s also sensitive to the Sino-American trade spat, which of course isn’t going to get any better anytime soon. I would say that’s probably the secondary driver of this pair right now as it is sensitive to all things trade related and geopolitical at times. Expect volatility, but I suspect that the buyers are coming back in.
This article was originally posted on FX Empire
