GBP/JPY continues to show volatility during Thursday trading.

The British pound has initially fallen during the trading session on Thursday but found support at the psychologically and structurally important 150 handle. By doing so, it looks like the market is trying to figure out where to go next, and with the jobs number coming out today, it’s likely that we will see a continued volatility until we get an answer. If the jobs number is good, it’s likely that the “risk on” attitude of traders around the world will send this market higher, as it typically does. However, if the jobs number is poor, it’s likely that we could see more of a safety bid towards the Japanese yen, which is quite typical for this pair as well.

If we break down below the 150 handle, we could unwind to the 149 level rather quickly. Otherwise, there was the previous uptrend line on the daily chart above that could cause a bit of resistance. If we can break above that resistance line, then we are free to go to the 155 handle. One thing is for sure, this pair has been very noisy lately, and I think that will continue to be the case. I believe that the volatility can offer plenty of opportunities, but ultimately this is a market that I think will continue to be one that you should play with small positions, only adding once you get a bit of clarity and confirmation.