GBP/JPY Forecast August 10, 2017, Technical Analysis

The British pound has been very volatile during the session on Wednesday as we continue to bounce around the 143 level against the Japanese yen. I also see support at the 142 level, and currently I think we are simply trying to consolidate and figure out where to go next. There is a bit of a downward bias in this market though, so I think that short-term rallies should be selling opportunities. If we can break down below the 142 handle, the market should continue to go lower, perhaps reaching down to the 140 handle after that. If we did break above the 143.50 level, then the buyers may get involved and we could go reaching towards the 145 handle over the longer term. I think that the market is going to continue to see volatility regardless what happens next, so you should size your trades accordingly.

Looking for clarity

I’m looking for a bit of clarity in this market, but I don’t see it quite yet. The one thing that I do know is that the last several sessions have been negative overall, so I should assume that we will continue to see the downward pressure. I don’t want to put in a full-size position at the moment, I believe there is far too much danger out there to be had. I think that by placing a small trade based upon either a move higher or lower is probably the best way to go, and then adding as the trade moves in your direction as a bit of safety as you can get more clarity from the overall market move before risking any serious trading capital on a particular position. It’s going to be difficult, but eventually this market should make its move. All things being equal though, does look like we probably have more of a downward proclivity.

GBP/JPY  Video 10.8.17