GBP/JPY Price Forecast December 12, 2017, Technical Analysis

The British pound drift a little bit lower against the Japanese yen during the trading session on Monday, reaching towards the 151.25 level as I record this. I think there is a significant amount of support at the 151 handle, and even more importantly, the 150-level underneath there is essentially the bottom of the uptrend. Market participants will be looking at pullbacks as value propositions, and I think that the market will offer opportunities to get involved. I think that the market breaking below the 150 handle of course is going to be quite a bit different. In the meantime, I think that a “buy on the dips” mentality should continue, as we have seen so much in the way of bullish pressure over the longer term.
You’ll notice on the chart that I have the 153-level marked in a blue line, and that for me signifies that we should continue to go much higher, and the breakout should have the market looking for the 155 handle, and then eventually the 160 handle. The pullbacks like this that we have seen over the last couple of sessions for me represent value as we have made a higher high, but have not managed to build up the momentum necessary to continue the move and follow-through. That’s to be expected though, the 153 level is important on longer-term charts. If we break down below 150, then I will step back and let the market stabilize a bit before placing any type of trade. I guess in a sense, I am essentially “long only”, at least in the short term.

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