GBP/JPY Forecast June 30, 2017, Technical Analysis

The British pound rallied during the day on Thursday, reaching to the 146.50 level and then started to roll over. It has been an extraordinary run for this pair, so I think a pullback is probably going to have to happen. While I am bullish longer-term, I would suspect that a pullback to the 145 level is very reasonable, and I think a lot of traders would be interested in getting involved in this pair at that level. I would wait to see some type of support though, as we never really know what happens ahead of time. If the market proves itself to be supportive in that area, I think the 145 level makes a lot of sense for support as it is a large, round, and more importantly: a whole number. It will attract a lot of attention, and will more than likely bring and more pressure to the upside.
Longer-term target
I have a longer-term target of 148, but we have come so far in such a short amount of time I think a pullback is necessary. Forex is a market that requires an extreme amount of patience, and this move that we are about to see could be a very good testament to that. Some people will be tempted to short this market as it rolls over but I don’t think that’s a very wise move. This pair seems to have just as much to do with the Japanese yen as it does the British pound, as the Japanese yen has been sold off rather drastically. While the British pound of course catches all the headlines recently, the reality is that this pair is highly influenced by the GBP/USD and the USD/JPY pairs. This is a pair that moves rather rapidly, so trying to step in front of a massive uptrend to pick up a few ticks on a pullback is a dangerous game.
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