GBP/JPY Price Forecast – British pound rallies again against yen
The British pound rallied a bit during the trading session on Wednesday, reaching towards the ¥145.55 level. However, there is a downtrend line just above that could cause serious issues. If that’s going to be the case, then look for signs of exhaustion that you can start selling. However, if we can break above the ¥147 level then we will have smashed through this potential downtrend line. When I look at this chart, it seems as if we are trying to form a descending triangle, which is quite interesting considering that we had previously for the bullish flag. In other words, this is a market that is full of confusion.
GBP/JPY Video 02.05.19
When you think about the dynamics of the GBP/JPY pair, should be a huge surprise? After all, it is highly sensitive to global risk, and then by extension is going to worry about a lot of different things at once. There are of course is the global trade situation which has people going back and forth as to what the outlook looks like for several economies around the world. There is the obvious Brexit issues out there, and part of the reason that we may have seen this market rally is due to the hope of a second referendum in the United Kingdom. However, I’m a firm believer that if that happened it would cost so much social unrest, that the British pound will probably sell off then as well. Ultimately, this is a pair that looks ready to roll over, but hasn’t quite shown signs of exhaustion yet.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
