GBP/JPY Weekly Price Forecast – British pound noisy against Japanese yen as trade fears dominate

The British pound went back and forth or the week, forming a slightly negative candle, and it looks likely that we will continue to be very choppy and erratic. The ¥145 level underneath is massive support, of course demonstrated by the massive hammer that formed a few weeks previously. I believe that the ¥150 level above is resistance, and quite frankly this market is going to move based upon headlines involving trade wars and possibly even economic growth.

Pay attention to stock markets, they have a remarkable insight as to how the economy is going and will quite often lead where this pair goes. For example, if the S&P 500 continues to drop, then this pair will continue to draw. Obviously, the exact opposite can be true as well. If we break down below the hammer from three weeks ago, then I think the market goes looking towards the ¥140 level. Otherwise, if we can reach towards the ¥150 level and finally break above it, then we could go to the ¥155 level. This is a market that is definitely at risk of breaking down, but I think keeping a small position on and then adding if it moves in your favor is probably the best way to approach this market. Expect choppiness and dangerous conditions.

GBP/JPY Video 18.06.18

This article was originally posted on FX Empire

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