GBP/JPY Forecast June 15, 2017, Technical Analysis

The GBP/JPY pair fell rather significantly during the day on Wednesday, after going sideways for several hours. We broke below the 140 handle, and eventually reached towards the 139 handle. Because of this, I believe that the market should continue to be volatile, as there are a lot of different things moving both the British pound and the Japanese yen currently. I think that the overall downward pressure will continue to plague this market, but we have not managed to fill the gap above the 141 handle yet, so we could see a return to attempt that. With the Federal Reserve making a very important announcement during the session on Wednesday, it’s likely that this will be a very volatile currency pair. Because of this, I suspect that this will have more to do with trying to react similarly to USD/JPY movements.
However, longer-term it’s all about London
With all the surprises coming out of the United Kingdom as of late, I think there is a lot of fear when it comes to owning the British pound. Because of this, I believe that rallies will continue to offer selling opportunities overall, so I most certainly prefer shorting this market. I believe that the market could go towards the 139 handle, and perhaps even lower than that. Nonetheless, the one thing that I think you can count on is quite a bit of volatility. Because of this, position size should remain small if you choose to jump into this market, but I suspect that waiting 24 hours is probably going to be vital when it comes to this market as the unpredictability of the reaction to the Federal Reserve is going to be very dangerous indeed, and that being the case, you could lose quite a bit of money and a rather short amount of time.
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