The GBP/JPY pair initially tried to rally during the week but broke down below the uptrend line that had been so prevalent. Beyond that, we have sliced through the 140 level during the day on Friday, and that suggests that we are going to continue to see bearish pressure. Because of this, I think that the sellers to come in and continue to buy the Japanese yen overall, as we have a bit of a “risk off” attitude around the world. The question now is whether we can maintain a move below the 140 handle. If we do not, we could get a bit of a bounce. However, this is a market that will continue to favor the Japanese yen over the British pound, as the British pound has a lot of ugliness attached to it. This market will be very sensitive to risk appetite, so we start to see a lot of fear in the markets overall, that will also exacerbate this move lower.
GBP/JPY Video 21.8.17
This article was originally posted on FX Empire
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