GBP/JPY Forecast June 19, 2017, Technical Analysis

The British pound initially tried to rally during the day on Friday but found enough resistance at the 142 level against the Japanese yen to pull back. Now we are closing the day at roughly where we started, forming a slightly positive daily candle. With this being the case, we have filled the gap that started so many days ago, and the market looks like it is now trying to figure out what to do next. Quite frankly, I believe that this market will be driven by external forces more than anything else. In other words, I think we will see the risk appetite of traders around the world come into focus. If we can see the stock markets rally significantly, then I think this pair will break out to the upside. On the other hand, if we see a cello, the market will probably go looking for support below at the 141 level, and then the 140 level. Longer-term, I still believe in buying this pair, and I look at dips as value, but we may have to deal with quite a bit of noise in the meantime.
Target
Given enough time, I think that we go to the 148 handle above. Longer-term charts have been making higher lows as of late, so therefore it makes sense that eventually the bullish traders when as the Japanese yen is starting to sell off and I believe that the British pound is trying to bottom longer-term against most currencies. By on the dips continues to be the way to play this market, but I also recognize that there is a lot of volatility and therefore small position sizes may be the appropriate way to play this market as it can be extraordinarily volatile and dangerous.