GBP/JPY Forecast June 20, 2017, Technical Analysis

The British pound rallied slightly during the day on Monday, but then pulled back to find support near the 142 handle. The 142.50 level above being broken above is a very bullish sign, and would have me buying this market rather rapidly. You can see that there is a gap from several sessions ago market on the chart, and that of course being broken to the upside is a very strong sign. That being the case, the market should then reach towards the 145 handle. Volatility continues, especially considering that the negotiations between the United Kingdom and the European Union continue. The market is extraordinarily sensitive right now, which quite often it is sensitive to risk appetite under normal conditions. Because of this, I believe that the choppiness should continue to be a factor, but if we can break above the gap, that has me trading in one direction only. A breakdown below the 141.50 level would be negative, and could have me selling, perhaps reaching down to the 140.50 level next.
The safety currency
The Japanese yen of course is the safety currency, so if we get some type of massive negativity out there, this pair will fall apart. The market continues to see a lot of headlines going in both directions, and that of course will make this be a very interesting place to be. If we can break above the resistance above, I think that we will see a lot of momentum flood into the marketplace, and that should make the move rather rapid to the upside when it happens. I prefer the upside, but I recognize that the longer-term move needs to happen for me to put significant amount of money to work in this pair as the speed should pick up.
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