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GBP/JPY Price Forecast – British pound finding support at major level

Christopher Lewis

The British pound fell rather hard during the Asian trading session, breaking through the ¥140 level rather handily. That being the case, it was definite confirmation of a “risk off” attitude early in the day. However, by the time the Europeans and the Americans came on board, things started to change and we broke back towards the ¥140 level. At this point, it looks as if this level could end up holding, and a break above the top of the candle stick for the daily Friday session could be a signal to start buying.

GBP/JPY  Video 20.05.19

The 50% Fibonacci retracement level is at the ¥140 level, and therefore it makes sense that there would be a lot of interest in this area. Ultimately, if we do break down below the bottom of the candle stick that would be a bad sign, perhaps sending this market down to the 61.8% Fibonacci retracement level. That would be closer to the ¥138 level, so keep that in mind – there is an argument to be made for playing the break of this daily candle stick in either direction. This pair is rather sensitive to global attitudes, and then of course there is the entire Brexit situation which seems to only get messier by the day. Good news from the US/China trade situation could send this market higher, while bad news out of London or Beijing could send this market lower.

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This article was originally posted on FX Empire

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