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GBP/JPY Price Forecast – British pound stable during quiet session

The British pound was stable against the Japanese yen during the trading session on Thursday, as we had very little in the way of liquidity due to the Independence Day holiday in the United States.
Christopher Lewis
GBP/JPY daily chart, July 05, 2019

The British pound rallied slightly during the trading session on Thursday, stabilizing just above the ¥135 level as the Americans were away. The ¥135 level underneath of course is supportive due to the fact that it is a large, round, psychologically significant figure, so if we break down below the hammer from the previous session, that would be a very negative turn of events. However, it’s difficult to imagine this pair moving drastically over the next 24 hours as we await the jobs number. It’s not until after that comes out that we could get some movement. At this point, one would have to think that there is a significant amount of support at this level.

GBP/JPY  Video 05.07.19

If we do bounce from here, it will probably be somewhat muted, because although it looks like we are trying to form a little bit of a bottoming pattern, the reality is that it will be very noisy on the way back up, so I think that it’s going to be choppy. Keep in mind that the jobs number will probably through the markets around considering that it’s not only the jobs number, but it is also going to be very thin as far as volume is concerned due to the fact that most of the American bankers will still be away on holiday. Beyond that, the days of news trading are all but done. Liquidity is going to be a major issue on Friday, so expect erratic and difficult behavior. A daily close below the ¥135 level does open up the door down to the ¥131.50 level.

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