Yahoo Finance GBP/JPY Weekly Price Forecast – British pound choppy against yen for the week
The British pound has been very choppy against the Japanese yen for the week, forming a somewhat neutral candle after forming a shooting star. Because of this, I think that it’s good to be difficult for this pair to run he is in this environment and I would anticipate a short-term pullback. However, I also see the ¥140 level as very supportive, so I think that any pullback from here will probably be supported quite handily at that level. The alternate scenario of course is that we break above the top of the shooting star and continue to go higher. I think that a lot of what we are seeing here is a reaction to the trade war between the United States and China. Because of this, I think that we are going to continue to struggle in this pair because we have a lot of questions when it comes to that area, none of which seem to have good answers right now. Beyond that, we have the Brexit which of course is causing a lot of noise with the British pound itself.
I think that we could possibly be looking at the latter part of a wave two as far as Elliott wave traders are concerned, but obviously we have some work to do to get to the upside. If we were to break down below the 140 young level, that would be a very negative sign, and could break this pair down to the ¥137 level rather quickly. In other words, this is good to be a very difficult trade to hang onto, and it probably lends itself to more short-term trading.
GBP/JPY Video 10.09.18
This article was originally posted on FX Empire
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