GBP/JPY Price Forecast – British pound noisy against yen for Tuesday session

The British pound initially rallied during the trading session on Tuesday but continues to be very noisy which makes a lot of sense with the concerns that we have coming out of Turkey, and of course the trade war that has been so noisy as of late. Ultimately, I think you need to pay attention to the trade talks and jabs taken between the Americans and the Chinese, which will of course have a major influence on where this pair goes. Beyond that though, the British pound has a lot of problems right now, as we worry about the Brexit and the lack of a deal with the European Union.

In the short term though, it does look like we are trying to bounce again, and perhaps the Americans will be a little bit more generous with risk appetite, but I also believe that there is a ton of supply above, especially near the ¥143 region. I would be looking to sell rallies at this point, it would not be tempted to buy this pair anytime soon. I believe that it’s not until we break above the ¥145 level that it becomes a strong candidate for larger long positions. Until then, I look for exhaustion to take advantage of, as this market is so clearly affected by the Sino-American conversation. The ¥140 level has caused a significant bounce, but from a structural and psychological standpoint, that makes a lot of sense.

GBP/JPY  Video 15.08.18