Yahoo Finance GBP/JPY Price Forecast – market continues range bound motion
The British pound went back and forth during the trading session on Friday as traders start to look towards the weekend. Keep in mind that this pair is still highly sensitive to the geopolitical risks, and of course the trade war that seems to continue to pick up between the United States and China. In general, I think we are essentially going to continue to trade back and forth between ¥147, and ¥150 above. Using some type of range bound system or perhaps an indicator along the lines of the stochastic oscillator that can more properly identify overbought and oversold conditions. At the very least, you should be looking at the extremes and how they are performing. For example, if we drop from here and see a hammer on the hourly or four hour chart as shown in this video, and it’s near the ¥147 level, I won’t hesitate to start buying again.
Another thing you should be paying attention to is the Brexit headlines. Every time we get a negative headline, the British pound sold off rather drastically. However, the buyers come back into the market and pick it up as it is essentially “cheap.” I believe at this point the market is simply waiting for some type of conclusion to the argument between the UK and the EU, but we are getting towards the end of that argument and as soon as we get some type of certainty, regardless of what it is, I suspect that the British pound will take off to the upside.
GBP/JPY Video 15.10.18
This article was originally posted on FX Empire
