GBP/JPY Price Forecast January 2, 2018, Technical Analysis

The British pound rallied against the Japanese yen during the trading session on Friday, and what would have been somewhat thin volume. The 153 level above is massive resistance based upon the weekly chart, and I think that if we can clear that level, the pair will be ready to go much higher. Pullbacks at this point should be buying opportunities, and it’s likely that the marketplace will look at it as such. I believe that the market participants will be highly attracted to this pair if we get more of a “risk on” attitude in the stock markets, as they have a positive correlation between the 2.

If we break above the 153 handle, I think we go looking towards the 155-handle next, and then possibly the 160 level after that. I believe given enough time, we will break out, but it may take several sessions to do so. Also, we have to keep in mind that the jobs number comes out on Friday, and they can have a lot to do with where we go risk asset wise during the week, and that of course finds itself influencing this pair. If we were to break down below the 151 handle, that could send the market down to the 150 level, but that is the least likely of scenarios that I have mapped out right now. Open the position slowly, and add on pullbacks that offer value. I would become much more aggressive above the 153 level, which would show the market being ready to go higher.

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