GBP/JPY Forecast August 23, 2017, Technical Analysis

The GBP/JPY pair rallied initially during the session on Tuesday but found trouble at the previous uptrend line that had recently been broken. This is at roughly 141, and they move above there would be very bullish at this point. Having said that, I think that the market will probably find support at the 140 level again, and we are likely to see a bit of consolidation with a negative bias. While the Japanese yen has been soft during the session, the British pound most certainly has as well. Because of this, I’m not overly concerned about a meltdown, but I do recognize that a fresh, new low is most certainly a cell signal. If we were to break above the 141 handle, I would become very bullish.

Risk appetite

Keep in mind that this market is very sensitive to risk appetite, and therefore is likely to see a reaction to the stock markets, commodities, and the like. If they continue to rise, it’s only a matter of time before we left, but we do have the caveat of the United Kingdom leaving the European Union. Because of this, I think it’s only a matter of time before we see volatility returned of this pair. I will watch those 2 areas that I have mentioned, and trade accordingly, as I believe that the thin market conditions may continue to be part of the problem as well.

GBP/JPY  Video 23.8.17