GBP/JPY Forecast January 12, 2017, Technical Analysis

The GBP/JPY pair initially tried to rally during the day on Wednesday, but then turned right back around to form an exhaustive candle. By doing so, the market looks as if it’s reaching towards the 140 handle below. This is an area that should continue to be a bit of a floor in the market, but I think the support extends all the way down to the 138.50 level below. Until then, I look at supportive candles as buying opportunities longer term, and believe that we will eventually reach towards the 150 handle above.