GBP/JPY Price Forecast January 12, 2018, Technical Analysis

This pair has been very volatile over the last couple of days, as it appears that the Japanese government suggested that quantitative easing has the potential to be lowered. I don’t think that’s going to happen, and I believe that value hunters underneath is starting to look for an opportunity to go long. The 150-level course is psychologically supportive, although we have broken below an uptrend line recently. The reality of the market is that it’s very difficult, but I think that if we can break above the 152-handle level, this is a market that continues to go much higher, and recently breaking above the 153 level was a very bullish sign. However, the last action has been very difficult to gauge, and I think that this market will continue to be very difficult to trade. Because of this, no matter what you do you should use a small trading position.

If we break down below the 150 handle, the market probably goes looking towards the 147.50 level after that. Otherwise, if we break above the 152 handle, we go looking at the 153 handle again for a longer-term “buy-and-hold” situation. In the meantime, is can be very dangerous to trade this market, so although I suspect that we are going to see a bit of buying pressure, I recommend staying away from this market as there will be easier trades to take in the Forex world right now. The British pound has been a bit oversold recently, and that may be part of what we are well.

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