GBP/JPY Forecast August 3, 2017, Technical Analysis

The British pound initially rallied against the Japanese yen rather stringently during the session, but then melted away as equity traders in the United States sold everything. Ultimately though, this is a market that seems as if it is building up pressure, something it’s only a matter of time before we return to the much higher levels. With this being the case, I am a buyer of dips, and believe that the market is significantly supported below, at least the 145 handle. Because of this, I am looking for opportunities at dips, and I believe the given enough time we should continue to see interest in this market. However, today is a very important day when it comes to London.

Interest rate announcement

The interest rate announcement coming out during the day is a significant event when it comes to the British pound, and although we should already have a good handle on what the central bank thinks, there is also the possibility that they surprise. If so, that could throw this market into disarray. However, it does look likely that the uptrend should continue. So that being said, I am a buyer of short-term pullbacks as they represent value that you can take advantage of. The selloff during the American session was more or less based upon fear than anything else, or perhaps just simple algorithmic trading gone awry. I believe short-term pullbacks continue to offer value, and until we break down below the 145 level which would be a very significant turn of events.

GBP/JPY  Video 03.8.17