GBP/JPY Forecast January 19, 2017, Technical Analysis

The GBP/JPY pair initially fell on Monday, but turned around to form a bit of a hammer. I think that the 140 level above is resistive, but if we can break above there I think that the market should continue to reach towards the 145 handle, and that eventually the 148 level. By gapping low and then breaking to the upside and going above the gap, that shows a significant amount of support. I think this has more to do with the Japanese yen than the British pound, but of course the British pound has been rather healthy over the last couple of days. I have no interest in selling right now, and I believe that we could get an explosive move with just a little bit of help.