GBP/JPY Forecast August 14, 2017, Technical Analysis

The British pound struggled a bit during the day on Friday to figure out which way it was going, as we continue to dance around the 141.50 handle. The market looks as if it was trying to take a bit of a breather on Friday, and after the significant selloff that we had seen during the week, this makes quite a bit of sense. However, what concerns me is that we have not seen much of a bounce. Keep in mind that this pair tends to be very sensitive to risk appetite globally, so if we can get a settling of the argument between the United States and North Korea, I think that could be one of the external factors to pushing this market higher. The British pound of course has its own issues with the divorce from the European Union, so there is an extreme opportunity for volatility.

Waiting for impulsivity

We need to see some type of impulsive candle to get involved as far as I can see. If we break to the upside, then I think the market probably goes to the 142.50 level. However, if we break to a fresh, new loan then I think that the market will probably reach towards the 140 handle underneath. This is a market that is going to be held hostage to random noise, so keep that in mind. I would not put on a large position regardless of what happens, as the volatility could be rather drastic once we finally do pick up some momentum.

GBP/JPY  Video 14.8.17