GBP/JPY Price Forecast January 10, 2018, Technical Analysis

“The Dragon” is one of the most risk sensitive trading pairs that we follow here at Eracash. The market sold off rather drastically during the open, but has found a bit of support at the 152 level. By bouncing the way it has, I suspect that the market is trying to put a bit of a floor in the place, perhaps sending it back towards the 153 level, an area that has been important more than once. The fact that we broke above there recently suggests to me that the buyers are trying to push towards the upside, but it may be very choppy indeed. After all, if the stock markets rally, that’s typically good for this pair, but of course the exact opposite happens as well.

There is a significant uptrend line underneath, and that is what I look at from the overall attitude of the market, but I recognize that you should probably add slowly as the market is in your favor, because the noise in this market can be deafening at times. Because of the choppiness, it’s best to play this in a trend following type manner, meaning that adding slowly in building a larger position if we can make a fresh, new high, that to me suggests that we are ready to go much higher, perhaps the 163 handle over the next couple of months.

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