GBP/JPY Forecast January 5, 2017, Technical Analysis

The British pound rallied against the Japanese yen on Wednesday as we continue to see quite a bit of volatility in the Forex markets. This is not a huge surprise, as the market picks up volatility due to traders jumping back in after the holidays. I still believe in the longer-term uptrend when it comes to this pair, and thus I look at pullbacks as potential value plays. However, I also recognize that we may be quiet over the next several sessions, so patients will be needed. The 140 level below is the “floor” in this market.