GBP/JPY Price Forecast – Sterling rallies again against the Yen

This could be an interesting 24 hours for this pair, as the Bank of England has a statement coming out. Because of this, expect a lot of volatility, but unless the Bank of England is extraordinarily dovish, I would anticipate any pullback at this point to end up being a buying opportunity. I believe that the ¥146 level underneath is support, and I do believe that the impulsive move that happened 24 hours ago should continue to push this market higher and shows significant demand. The market of course will be reactive to the central bank statement, and then the jobs number on Friday. I believe that the market will continue to be noisy to say the least, so your position size should be small, adding as the trade works out in your favor.

I believe that selling this pair is probably all but impossible, at least until we break down below the significant ¥145 level, something that we are nowhere near doing right now. I believe that the smartest trade is to look for some type of value underneath, so it’s going take a certain amount of patience to benefit from this potential move. I have a longer-term target of ¥150, but we need some type of catalyst for more of a “risk on” situation, or we need the Bank of England to be more hawkish than anticipated. At this point, I believe that the Japanese yen is going to continue to be soft, so that should help as well.

GBP/JPY  Video 02.08.18

This article was originally posted on FX Empire

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