GBP/JPY Forecast July 10, 2017, Technical Analysis

The GBP/JPY pair has been very volatile during the Friday session, as we had initially shot higher, but then struggled at the 147.50 level. Not only did we pull back, we wiped out all the gains, and it now looks as if we will continue to see quite a bit of volatility in this pair. That’s mainly because the British pound is in focus when it comes to headlines, due to the divorce from the European Union. Ultimately, the Japanese yen is being sold off by Forex traders around the world, so I think that if the headlines from the negotiations between Brussels and London can remain quiet, the market should then continue to favor this pair to the upside as well, and quite frankly could move much quicker. I think at this point, if we can break above the highs, we should then go to the 150 level over the longer term. I think that there will be a lot of volatility between here and there, as is pair tends to be volatile under the best of circumstances.
I remain a buyer of dips
I remain a buyer of dips in this market, but I also recognize that stability is hard to come by. I would use small positions as you could get quite hurt in the volatility that we will see. Longer-term market should continue to favor the upside as well, and once we get above the 150 handle, the market will probably change the overall trend. In the meantime, I think short-term traders are probably what we’re going to see jumping into this market as it will be a very difficult market to hang onto for a longer-term position. If you do choose longer-term trading, you will probably have to add to slowly to your position as things work in your favor.

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