GBP/JPY Price Forecast December 29, 2017, Technical Analysis

The British pound was choppy during the trading session against the Japanese yen on Thursday, but I think we are eventually going to try to reach towards the upside, perhaps breaking above the 152 handle, and then looking towards the 153 level. That is an area that being broken above makes it a longer-term buy-and-hold scenario, and it would be a very bullish move, as the weekly charts have seen plenty of resistance at that level. Until then, anticipate short-term pullbacks for buying opportunities, as the market should continue to find plenty of reasons to go higher based upon a “risk on” appetite, as stock markets around the world look very bullish.

If we do pull back from here, I think the 151 level has a lot of support. If we break down below there, the 150 handle is even more important. The 150 handle is massive support, and I think it is a “floor” in the market, and I think that we will continue to see buyers every time we dip down to that area. If we were to somehow break down below the 149.50 level, that would be catastrophic and could send this market much lower. That being said, we have been grinding higher over the longer term, and I think that will continue once we get past the New Year’s Day celebrations. This market should continue towards the 163-handle longer-term, with of course the occasional pullback that could offer value you can take advantage of. Expect volatility, but I still prefer buying.

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