GBP/JPY daily chart, July 27, 2016

GBP/JPY Forecast July 27, 2016, Technical Analysis

The GBP/JPY pair initially fell during the course of the session on Tuesday, but bounced enough to form a bit of a hammer. This of course is a very bullish sign, and if we can break above the top of the hammer, the market could very well grind its way towards the 144 level. A break above there sends this market looking for the 150 handle, if not beyond there. While I do not like the British pound in general, the Bank of Japan will continue to do what it can to support other currencies against the Japanese yen.