GBP/JPY Forecast July 7, 2017, Technical Analysis

The British pound initially rally during the day on Thursday, but found enough resistance at the 147 level to turn around and break down towards the 146.50 level. That’s an area that is massively supportive from what I have seen over the last several sessions, and with the Nonfarm Payroll Numbers coming out today I think that we will get some volatility in the markets. If we do pull back from here, the 145 level will offer the next major support level. That’s an area that I think will continue to attract a lot of attention. If we break down below there, that’s a negative sign and we think we could then go to the 144 level. However, I believe in the uptrend so far, and it looks as if the Japanese yen will continue to be sold off in general.
Job markets and the Yen
I believe that the job figures will have a massive influence on the USD/JPY pair, and that will have an effect over here. If the jobs number is strong out of America, that typically gets sellers involved in the Japanese yen markets, and that carries over to this pair. If we make a fresh, new high, I believe that the market will eventually go to the 150 handle, but it may take several weeks to get there as we continue to see quite a bit of volatility and concern when it comes to markets overall. Alternately, if we break down below the 145 level, the market will probably find buyers again at the 144 handle, and then again at the 142 level.