GBP/JPY Forecast June 29, 2017, Technical Analysis

The British pound went sideways initially against the Japanese yen during the day on Wednesday, but then shot through the roof as Bank of England head Mark Carney suggested that perhaps interest rates rising in the United Kingdom weren’t out of the question. If the global markets continue to boom, he says that it will be necessary to raise the interest rates. That of course, the market off guard, and then the British pound rallied overall. Because of this, we saw exacerbated moves against the Japanese yen as this pair tends to be very volatile anyway. By breaking above the 145 handle, it shows a significant amount of strength, and it now looks as if we are ready to go even higher.
Buying dips
I believe that buying dips will continue to be the way to go going forward, and it looks as if the 145 level is trying to offer significant amounts of support. That should build upward pressure and more importantly, confidence in the uptrend. The 147 level is a significant barrier above that I think the market will go looking for, and that of course is going to be my target. The 144 level below should continue to act as a “floor” in this pair, so if we can stay above there don’t have any interest in shorting and I think that the buyers will continue to take this market to the upside. It will be interesting to see what the Asians do with this market, but it appears that the Americans are more than comparable with a “risk on” attitude when it comes to currency’s overall, and this market is one of the best ways to play that attitude. Because of this, I believe we will go higher over the next several sessions.