British pound falls against Japanese yen on Friday

The British pound fell significantly during the trading session on Friday, reaching down towards the ¥146 level, but stabilizing a bit later in the day. I think there is plenty of support underneath, and when I look at the weekly charts it’s obvious that we have conflicting pressures at the moment. The shooting star for the week was preceded by hammer from the previous week, and I think at this point this is a market that is going to be very sensitive to the geopolitical headlines coming out over the wires.

The ¥145 level is massively supportive, and I think that support extends below as well. If we were to make a fresh, new low on the weekly chart, then obviously that would be a very bearish turn of events and could send this market down to the ¥142.50 level. Overall, this is a market that will continue to be extraordinarily dangerous, so keep in mind that your position size should be somewhat small, that way you can ride out the massive amounts of volatility that is to be expected. If we get good news from the G7 conference, or at least some type of reconciliation with the Americans, that could be reason enough for this market to go higher. Beyond that, good news coming out of a meeting between Donald Trump and the North Koreans could also push this market higher.

GBP/JPY Video 11.06.18

This article was originally posted on FX Empire

More From FXEMPIRE:

• S&P 500 rallies significantly during the week

• Crude oil markets fall during the week only to find support

• Silver markets rally for the week

• Natural gas markets have a rough week

• Euro rallies during the week but gives up much of the gains

• British pound fails to keep gains for the week