GBP/JPY Price Forecast – “risk on” theme for Thursday

The British pound rallied significantly during trading on Thursday, as it was more of a “risk on” an area around the world. We had broken above the top of an ascending triangle on the hourly chart, and decidedly so. Because of this, I anticipate that the market probably continues to go higher, maybe to the ¥147 level in the short term, and of course the obligatory reaction to the jobs number coming out of America today should have a major influence. Overall, I believe that the market will remain volatile overall, so keeping a smaller trade position still remains paramount. However, it looks as if we are trying to bottom in general, and it’s almost as if the world is looking for an excuse if you will to rally.

Pullback should offer buying opportunities, unless of course we break down below the uptrend line that I have marked on the chart, somewhere near the ¥145.50 level. A breakdown below that level would send this market much lower, perhaps down to the ¥145 level and then even to the ¥144 level.

Beyond the jobs figures, we also have the specter of potential headlines coming out of either the United States or China, which of course will revolve around potential trade wars. That of course will have an influence on where risk appetite goes, and thereby have an influence on where this pair goes next. In general, expect noisy trading overall.

GBP/JPY  Video 06.07.18