GBP/JPY Price Forecast – risk on rally takes off in Asian

The British pound rallied significantly against the Japanese yen during the day on Friday as it was announced during Asian trading that the EU had come to a bit of a consensus when it comes to immigration issues. This is a major dividing issue for the countries and the EU, so it makes sense that there was a bit of a “risk off” attitude to the markets until this came about. However, I think that we still have many issues out there that could jump back into this market and start selling off again. After all, there is still the significant threat of trade war, and that of course works against the British pound in this pair as it would certainly hurt Asian trading.

Overall, if we can break above the ¥146 level, the market should continue to go much higher, perhaps reaching towards ¥147 level next. Overall, I think the one thing you can count on is choppiness, but I think that the overall attitude will move upon headlines more than anything else, as we are certainly trading more on emotion these days than anything else. As with most forex pairs, I recognize that a small position size is probably prudent, and that’s going to be especially true in this pair as it is so volatile under the best of circumstances. If we turn around and break below the ¥145 level, at that point it would be obvious that the market was breaking back down.

GBP/JPY  Video 02.07.18

This article was originally posted on FX Empire

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