GBP/JPY Price Forecast at ¥146 level

The British pound has gone sideways during most of the session on Tuesday, as we tread water just below the
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at ¥146 level. The market looks likely to continue to tread water in the short term, at least until we can get an idea as to the political situation in the United Kingdom, and of course the overall risk appetite around the world.

The British pound has gone sideways during most of the session on Tuesday, with the exception of a little bit of a turnaround and bullish pressure. However, we are not able to break above the ¥146 region as I record this. There is also the previous uptrend line that we had broken through, so that could cause a bit of resistance. If we can break above the ¥147 level, then I would be convinced to the efficacy of the recovery. Otherwise, I would anticipate a lot of sideways action in the short term.

I believe that the ¥145 level underneath will be supportive, and I think it will take a bit of pressure to break down through that level. Overall, the market looks likely to be noisy with a slightly downward proclivity, at least as long as we worry about trade wars and the like. Remember, this pair tends to be highly sensitive to risk appetite around the world, and with the added bonus of political turmoil in the United Kingdom, it tends to push this market a bit lower naturally. If there is some type of turnaround, it won’t be easy to deal with, but I think once we get above the ¥147 level, fresh money will come into the marketplace and drive it much higher. If we were to break down below the ¥145 level, that then opens the door to the ¥142.50 level.