Yahoo Finance GBP/JPY Price Forecast – the Dragon falls on risk aversion
The British pound has struggled a bit during the day on Monday against the Japanese yen, which makes sense considering that we have a lot of global concerns when it comes to risk appetite. There is the possibility of Angela Merkel being ousted from office, the continued tit-for-tat tariffs between the United States and China, geopolitical concerns, and a host of many other issues.
The British pound of course has been very volatile due to the United Kingdom leaving the European Union, which leads to a lot of uncertainty. Beyond that, the Japanese yen is considered to be a major source of stability and safety, so it makes sense that this pair would continue to favor Japan. Until we get some type of clarity with the global geopolitical situation, and of course the concerns coming out of the European Union as well as the United Kingdom, it’s likely that this pair will continue to struggle. It also is heavily influenced by risk appetite in the form of stock markets, so keep that in mind. I believe that the ¥145 level underneath will be supportive though, as it is a large come around, psychologically significant figure, and of course has been structurally important in the past. However, if we were to get a bounce from here we could return as high as ¥148 based upon good news. That would be a simple return of consolidation, and of course we would reach towards the top of the range which of course is the ¥148 level.
GBP/JPY Video 19.06.18
This article was originally posted on FX Empire
