GBP/JPY Forecast May 10, 2017, Technical Analysis

The GBP/JPY pair had an explosive moved to the upside happen during the day on Tuesday, as we touched the 147.50 level above. I think that ultimately, this market will go fishing for the 148 handle, and therefore this is a market that still has plenty room to move. After that, the 150 handle makes a nice round target, and a lot of people will be interested in that. As I look at the hourly chart, I suspect that the 147 level will be an area of support as we go forward. The Japanese yen has been selling off against most currencies, and that of course will be any different here as the pair seems to be rather reactive to risk appetite in general. Although that’s the case, I believe that you will have to give the market a bit of room to move, as it does tend to be very volatile, but I recognize that the longer-term move seems to be in.

Pay attention to the stock markets

If the stock markets look healthy, that generally means that the risk appetite is healthy as well. Ultimately, I believe that the market will follow the S&P 500 and other such indices, and with that being the case, I believe that as we continue to grind to the upside, it might be volatile but certainly there seems to be enough buying pressure to continue to move this market. Ultimately, I look at pullbacks as an opportunity to pick up value in this pair as I do with all yen related markets. I have no interest in selling, I believe that the buyers will remain in control for the near future. The risk appetite seems to be there, so it makes sense that we continue to climb.
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