GBP/JPY Forecast July 18, 2017, Technical Analysis

The GBP/JPY pair initially fell during the session on Monday, but the Americans came back and pushed the pair straight up. The market looks as if it is trying to break out to the upside, and as soon as we can make a fresh, new high, I suspect that this pair is going to go much higher. Certainly, the buyers are in control, as it is more of a “risk on” type of situation. The British pound continues to look strong overall, although we did pull back slightly against the US dollar in the early part of the day. However, by breaking through major resistance recently, it looks as if the British pound is ready to continue going higher overall, and that certainly will be the case against the Japanese yen.
Buying pullbacks
As you can see, buying pullbacks over the last week or so has worked quite well. I think that continues to be the case as we trying to build up pressure for the break out. Once we get that breakout, I suspect that the market is going to go hunting for the 150 level above which is my longer-term target. There will probably be a lot of choppiness on the way, but I suspect that the longer-term trader will be rewarded with their patience and diligence. I have no interest in selling, least not until we break below the 145 handle, which looks very unlikely to happen anytime soon. With this, I remain very bullish and suspect that adding small incremental positions on the way off probably is the best strategy to employ in this market and in these conditions. I believe most people are looking at pullbacks as value, and I suspect the market will treat them as such.