GBP/JPY Forecast January 31, 2017, Technical Analysis

The British pound fell rather significantly against the Japanese yen on Monday, forming a very ugly red candle. However, I see a significant amount of support below at the 140 handle, so I think that given enough time, the buyers will return. I will wait for daily close to show signs of buying pressure, and then take advantage of it. Until then, I’m going to sit on the sidelines. Short-term traders may be willing to sell this market, but I believe that the buyers could come right back in and push hard. Because of this, I’m very hesitant to sell.