GBP/JPY Forecast August 29, 2017, Technical Analysis

The British pound gapped higher against the Japanese yen at the open on Monday, but then pulled back to fill that gap almost immediately. We then rose from there, and find ourselves approaching the uptrend line from the weekly chart. If we can break above the 141.50 level, I feel that the market will probably continue to go to the upside. That would be a very bullish sign, but I think we need to see some type of overall “risk on” move around the financial world to make sense of that move. Because of this, I am a bit hesitant to get involved. However, the charts do tell me that above the 141.50 level, the buyers will probably jump in. You could even make an argument for an inverse head and shoulders of that point, although it would be complex and not necessarily the textbook example that would be nice.

However

I believe that we could roll over in this general vicinity, and if we do, I believe that the market probably goes back towards the 140 handle relatively soon. This is a market that tends to be very volatile, so be very careful with your position size as we are near very significant areas. Perhaps a smaller than usual trade may be necessary, and then add as the market makes its intentions clear. Overall, I believe that this market will be difficult because it not only takes in the noise of the British leaving the European Union, but it also deals with the noisy Japanese yen. Because of this, it does tend to move rather rapidly once the decisions been made, so keep that in mind. The great thing about this pair is once you’re right, you tend to be very right. Of course, the opposite can be true.

GBP/JPY  Video 29.8.17