GBP/JPY Forecast February 1, 2017, Technical Analysis

The British pound fell against the Japanese yen initially on Tuesday, but found enough support above the 140 level to turn around to form a nice-looking hammer. A break above the top of a hammer should be a buying opportunity, as we should continue to reach towards the 145 handle above. A break above there since the market then reaching towards the 148 level. A breakdown below the 140 level would be bearish, but I believe that the buyers will return sooner rather than later. With this, I favor the longer-term buy-and-hold mentality.