GBP/JPY Price Forecast December 22, 2017, Technical Analysis

The British pound has gone back and forth over the last 36 hours, and I do think that eventually we go looking towards the 153 level above. A “risk on” appetite around the world, especially in the stock markets, could help this pair, as it tends to be very sensitive to those moves. A break above the 153 level is a longer-term “buy-and-hold” scenario, and that’s exactly what I expect to see given enough time. Pullbacks of this point continue to offer value, and I believe that the 150-level underneath is massive support. It’s not until we break down below there significantly that I would be willing to sell this market, but I don’t see that happening anytime soon.

Volatility remains, but in the and I believe that the buyers are going to continue to pick up this pair on dips, mainly because the Bank of Japan is nowhere near tightening its monetary policy, while at the same time the Bank of England is dealing with a bit of inflation, which could have the Bank of England raising rates much sooner than the Bank of Japan. Structurally speaking, the 150 level is of course very important, so it’s likely that it will form a hard barrier to break down below. In fact, I think it would take a significant geopolitical issue or Britain specific negative scenario for this market to break through them for the longer-term.

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