GBP/JPY Forecast June 27, 2017, Technical Analysis

The GBP/JPY pair had a volatile session on Monday, as we initially rallied all the way to the 142.40 handle. However, we found resistance there again and pulled back significantly. The 24-hour exponential moving average looks as if it is going to try to offer some type of support, but with the stock markets being volatile during the session, it makes sense that the GBP/JPY pair would drop. I see a significant amount of support near the 141.50 level, so I would expect buyers to come back into the market somewhere in the general vicinity. I still believe that there is a significant amount of resistance near the 142.50 level, but it is probably only a matter of time before we break out. Once we get above there, I think that the market will probably try to go to the 145 handle.
Volatility continues
I believe that no matter what happens, this will be a market that shows quite a bit of volatility going forward, and with that being the case it’s likely that you will get opportunities repeatedly when it comes to buying value. I believe that the market will eventually break out, but there are so many moving pieces when it comes to this pair that it’s difficult to imagine we will have an easy go of it. Keep in mind that the British pound has a lot of moving parts in and of itself, as the negotiations between the United Kingdom and the European Union continue. Headlines will of course move the markets around, but I believe that we will eventually see buying pressure. A pullback from here could bring more pressure into the market once we see buying opportunities. It will take a while, but I expect to see the 145 handle.