GBP/JPY Price Forecast – British pound continues to grind sideways against yen

The British pound rallied during the US session on Thursday, reaching towards the ¥149 level before pulling back a bit. It looks as if we have a larger consolidation area that continues to keep this market intact. I think that there are a lot of risk appetite issues out there, and that of course will affect this pair drastically. · FX Empire

Christopher Lewis

Updated Thu, Oct 11, 2018, 9:07 PM

The British pound continues to go back and forth during the trading session on Thursday, as the market has found a larger consolidation area to go back and forth with. The ¥150 level above is a massive resistance barrier, and if we can get above there the market would break out rather drastically. The ¥147 level underneath the looks to be very supportive, and it seems as if we are tightening up the consolidation at this point. When I look at this chart, it seems like it is going to be a lot of the same going forward, it’s simply a market that we go back and forth, trading in small bits and pieces.

Overall, I think that the market is trying to figure out what’s going on with the Brexit and of course risk appetite, and it’s likely that the situation between the Americans and the Chinese continue to cause issues for risk appetite in general. Overall, this is a market that will continue to struggle with stability, but eventually I think we will get some type of conclusion to the Brexit situation, and that should help allow this market to break above the ¥150 level. If we were to turn around and break down below the ¥147 level, then the market probably goes down to the ¥145 level. Overall, expect a lot of volatility so I would keep my position size very small.