GBP/JPY Forecast June 6, 2017, Technical Analysis

The GBP/JPY pair initially gapped lower at the open on Monday, but then turned around to show very bullish pressure, not only filling the gap, but racing towards the 143 level above. That area has offered resistance in the past, so this is a surprise that we pulled back. But I think if we can break above here, the market should continue to go much higher, perhaps reaching towards the 144 level after that. I do recognize that this pair will be very volatile regardless of what happens, because the market has seen so in the way of a “risk on/risk off” attitude. Also, you have to keep in mind that the British elections will have a major effect on the British pound in general, so having said that I think that the pair will be highly volatile between now and the election on Thursday. On top of that, the market should continue to be very choppy due to economic concerns around the world.
The market I think will continue to show volatility
I believe that the volatility will be the biggest factor in this market, but currently we can break above the 143 level, I think the market should then continue to show quite a bit of buying opportunity. If we can get a larger than expected lead by the conservatives in the United Kingdom on Thursday, then I feel that this pair will go much higher and eventually break above the 144 level, reaching towards the 145 handle above. Ultimately, I believe that the next couple of days will be very difficult in this market, and that you may be best served by trading small positions, or possibly even staying on the sidelines as the market could end up being one of the more dangerous pairs we follow.