GBP/JPY Price Forecast – British pound jumps against Japanese yen

The British pound rallied against the Japanese yen during trading on Friday, but it looks to me as if we continue to see this market consolidate overall. However, it should be pointed out that the British pound continues to flex its muscles at the first hint of some type of Brexit deal, so keep in mind that as we fall, there seems to be a lot of value found near the ¥147.75 level. At that point, buyers have been stepping in and pushing this market much higher. All things being equal though, be cautious about a break down below there because that would send the market much lower.

To the upside, it’s difficult to gauge where the true resistance is be because of the impulsive candles that have recently formed. Although they got turned around, this was due to denials of tweets in things like that, not necessarily institutional selling. With that being the case, I look at this as a pair that could offer great range bound opportunities for those who are little bit nimbler. I do think the upside is probably the way to go longer-term though, because this pair like everything else involving the British pound wants to go so much higher. However, headlines will move this market around rather drastically so make sure you have your stop loss order in place, and you may wish to trade with a little bit smaller position than per usual. Eventually though, if we get the break out you can always add to your position then.

GBP/JPY  Video 10.09.18

This article was originally posted on FX Empire

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