GBP/JPY Price Forecast December 4, 2017, Technical Analysis

The British pound initially rally against the Japanese yen, but sold off later in the day as we are still looking to perhaps find more buyers to assist the previous breakout. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:12 PM

The British pound initially tried to go sideways during the session on Friday, but perhaps a bit of profit-taking ahead of the weekend helped the market drift a little bit lower. Later in the day, we got news that General Flynn in the United States was willing to testify against the White House in the Russian probe, and that had a lot of people selling off risk assets around the world, which of course has a massive effect on the GBP/JPY pair. With this being the case, we of course had to fall as this pair is so sensitive to stock markets and the like. However, the 150-level underneath should continue to be rather supportive, and it’s not until we break down below that level that I would be concerned. Quite frankly, as I’m recording this video it looks as if a lot of people are thinking that this could be a nice buying opportunity. The British pound has done quite well for some time, not only against the Japanese yen but also against other currencies.

I think that the market continues to be one that will be noisy, but these dips should continue to offer opportunities to take advantage of value. If we were to break down below the 150 handle, I think we would probably go looking towards the 149 level after that, perhaps even the 148 handle. Pay attention to risk appetite around the world, that should tell you pretty much everything you need to know in this pair, as stock markets around the world rally, we will more than likely see money flow back into this pair.