GBP/JPY Forecast June 1, 2017, Technical Analysis

The GBP/JPY pair had a very volatile session on Wednesday, as we continue to bounce around. It now looks as if the 145 level above is going to be very important, and if we can break above that level, I believe the market should then go looking for the 144 handle rather quickly. The 143 level could also offer a significant amount of resistance, and that resistance could be a selling opportunity. I believe the next session or so will be very important when it comes to the overall health of this market, and will decide where we go next. The British pound has been beaten up rather significantly, so a break above the 143 handle would be rather significant on several different fronts.
If we do pullback:
If we do pullback, I think there should be a significant amount of support near the 141.75 handle. I would not expect some type of meltdown going forward, I think rather it would be a general malaise taking over the marketplace. A breakdown below there should send the market looking for the 140 handle, which of course has a certain amount of psychological significance anyway. I believe that the volatility will remain high, so traders will have to be comfortable dealing with the back and forth type of action. This is why I prefer buying above the 143 handle, because it is such a clear and concise signal. Until then, traders will have to be nimble in order to take advantage of any trading positions that present themselves. Remember, this market is highly sensitive to risk appetite, so pay attention to how stock markets and of course news flow continues going forward as it will most certainly be reflected in this currency pair.
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