GBP/JPY daily chart, August 08, 2016

GBP/JPY Forecast August 8, 2016, Technical Analysis

The GBP/JPY pair initially fell during the day on Friday, but turned around to form a slight hammer. Quite frankly though, I think the 135 level above will continue to be very resistive, so I believe that it’s only a matter of time before we break down on this rally as we show signs of exhaustion. I believe that the markets look very vulnerable longer-term, and with that it makes sense that we continue to see sellers enter again and again. I have a target of 130 below but it will probably take quite a bit of back and forth trading the get there.