GBP/JPY Price Forecast – British pound choppy against yen on Thursday

The British pound continues the chop around overall against the Japanese yen during the day on Thursday, as there are a lot of moving headlines that can influence this market rather quickly.·FX Empire
Christopher Lewis
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The British pound has chop around against the Japanese yen during trading on Thursday, as we hover around the ¥147.50 level at the time of writing. The market looks like it is trying to respect the That has since been filled, so we could get a bit of a bounce. Beyond that, I see significant support underneath at the ¥146.50 level as well, so I think it’s only a matter time before we turn around and rally significantly. I think that rally would simply be a return to the consolidation that we had been in previously, so it makes a lot of sense. If we were to break down below the ¥146.50 level though, that would be a very negative sign, and could send this market much lower.

I think as soon as we get some type of clarity when it comes to the Brexit, the GBP/JPY pair will be one of the major beneficiaries. Traders will feel much more comfortable with the British pound at that point, because it is historically cheap. While the Brexit will of course disrupt the lot of the economy, the reality is that the British pound is historically much more comfortable at 1.60 than it is at 1.30 against the US dollar, which of course has the same influence over here. Ultimately, I think that the market will find a reason to rally, but obviously we are going to have a lot of erratic movement. Because of this, keep your trading position small, and only add once the market moves in your direction.

GBP/JPY  Video 19.10.18

This article was originally posted on FX Empire

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