GBP/JPY Forecast June 16, 2017, Technical Analysis

The GBP/JPY pair broke above the 141 handle during the day on Thursday, slicing through major resistance. We are now entering the gap from several sessions ago, and it looks as if we may try to fill that gap. Because of this, I am bullish in this market but I also recognize that it will be extraordinarily volatile, as it is during most sessions. I believe that buying pullbacks on short-term charts might be the best way to go going forward, and we could then reach towards the 142.50 level above. I believe that area will be resistive though, because technical analysis tells us that gaps get filled eventually, and once they do, there should be a turnaround. However, if we were to break above the gap, the market will go much higher.
Choppiness
Choppiness will continue to be the order of the day with his currency pair, mainly because of all of the headlines coming out of Great Britain lately. I believe that the divorce from the European Union will continue to cause a lot of noise in the British pound in general, so that will make “the Dragon” very difficult to navigate. However, I think that if you can hang on to this type of noise, the market could be very profitable on this type of move. Alternately, if we were to break down below the 140.50 level, that would be very negative sign as it shows that the market cannot get above the gap. That doesn’t typically happen, but when it does that’s an extraordinarily bearish sign. Because of this, I think the next 24 hours will be vital when it comes to this currency pair.
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