GBP/JPY Forecast June 5, 2017, Technical Analysis

The GBP/JPY pair fell apart on Friday, after initially tried to rally. The “risk on” attitude of the market turned around very rapidly, especially once the jobs number came out of the United States being much less stellar than hoped-for. That tends to take a lot of risk appetite out of the market, and that of course works against this currency pair. I believe that the market will probably rally from here, reaching towards the 143 handle. The 142 level underneath should offer support, and as long as we can stay above their think the market has a good chance of bouncing. If we were to break down below the 142 level, then I think that the market will probably go down to the 141 handle. Regardless, this pair tends to be very volatile and choppy when it comes to currency trading, especially considering that it is so risk sensitive.
Buying on the dips? Here’s your chance.
So, if you are buying on the dips when it comes to this pair, you just got your chance. That’s not to say that is going to be easy to hang on to this market, but certainly it looks as if this is an area where the buyers could be involved. If that’s the case, the market will more than likely go looking for the 143 handle, and then the 144 handle. Longer-term, I do believe that this pair goes higher but obviously there are a lot of questions when it comes to the risk appetite of markets around the world but at the stock markets are to be believed, looks like it is coming back later in the day on Friday. Ultimately, I don’t have too much in the way of interest when it comes to selling.
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