GBP/JPY Forecast August 4, 2017, Technical Analysis

The GBP/JPY pair fell significantly during the day on Thursday as the Bank of England suggested that interest rate hikes may not come anytime soon. That absolutely pummeled the British pound, and it’s in the market much lower. In fact, we breakdown below the 145 handle, and it now looks as if we are going to go much lower. That being the case, it’s likely that we will continue to see sellers jump into this market, unless of course the Japanese yen start selling off, then we could have a bit of a knock-on effect.

Jobs number

The jobs number comes out of America today, and that has a significant amount of influence on where Forex markets go overall. That being the case, looks likely that the market will continue to see volatility, and that the British pound seems to have run its course to the upside, lease for the short term. Given enough time, I believe that the market will try to stabilize, but right now I think that it will be at the mercy of where the USD/JPY pair goes after the announcement. Because of this, I believe that waiting until we get the daily close is probably the best way to trade this market, as this pair can be extraordinarily volatile at times, and it most certainly can be today after the shakeup out of London.

GBP/JPY  Video 04.8.17