GBP/JPY Price Forecast – British pound continues to grind higher

The British pound rallied a bit during the trading session on Tuesday, showing signs of strength yet again. As we approached the ¥143.50 level, it looks as if we are ready to go even higher. Ultimately, I think that the market will probably continue to reach towards the psychologically important 145 level given enough time, but we will have the occasional pullback along the way. That should be thought of as value appearing in the market, giving us an opportunity to take advantage of what has been a relatively strong move.

Beyond that, the British pound is starting to stabilize overall, as the oversold condition of Sterling has finally started to attract value hunters. We are getting relatively close to a Brexit deal, and as soon as we get certainly I think the market will probably go higher by default. I think the smart money is starting to jump in right now and front run the move to the upside, which of course will be exacerbated in this pair as the Japanese yen is less attractive due to lower interest rates. In fact, while most traders will be looking to the GBP/USD pair at the announcement of the Brexit deal, it could be the GBP/JPY pair that is the true recipient of buying pressure.

At this point, I believe that the ¥143 level is going to offer support, followed by the ¥142.50 level. Overall, I believe value hunting continues to be the best way to approach this market, so therefore that is exactly what I’m doing.

GBP/JPY  Video 29.08.18

This article was originally posted on FX Empire

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