GBP/JPY Forecast July 31, 2017, Technical Analysis
The GBP/JPY pair has been very volatile during the Friday session, as we look into the Monday session. It looks as if we are trying to form some type of support near the 145 handle, and as it is a large, round, psychologically significant number, that makes quite a bit of sense. I don’t have any interest in selling this market, least not yet as I see a significant uptrend line underneath. The GBP/JPY pair is obviously very sensitive to risk appetite, so pay attention to the stock markets and the commodity markets as they could give us a bit of a heads up on where this pair will go. Ultimately, I do believe in buying dips but stability is probably needed first. That might be what Friday was all about.
Aiming for 146.50
currently, I believe that the market will be aiming for the 146.50 level, which is a significant area of resistance. Ultimately, I believe that the market is a “buy on the dips” market, as long as we can stay above the vital 145 handle. I think that the level being broken to the downside is negative, but not necessarily terminal. Ultimately, this market should continue to go higher, and I believe that those who are patient enough to find support of action will take advantage of what could be a nice moved to the upside longer term. Either way, keep your positions small, because we have a significant chance of volatility.
GBP/JPY Video 31.7.17
This article was originally posted on FX Empire