GBP/JPY Price Forecast January 15, 2018, Technical Analysis

The British pound has exploded to the upside during the trading session on Friday, slicing through the 152 handle like it wasn’t even there. We have drifted a little bit lower, finding buyers underneath, and I think it’s only a matter of time before the buyers get involved. If we did breakdown below the 152 handle, it’s likely that the market would go looking for support at the 151.50 level, and the 151 handle. Ultimately, I think that the market is trying to reach above the 153 handle, as the weekly candle has been very bullish. Move above the 153 handle could send this market into a longer-term “buy-and-hold” trade, which is exactly what I expect to see next week.

I’m buying on dips, this will be especially true if stock markets continue to rally, as it gives you an idea of the risk appetite around the world. The higher the risk appetite, the higher this pair goes. More importantly, the GBP/USD pair has broken above the gap lower from the vote to leave the European Union, showing that money is willing to flow back to the British pound again. I believe this market continues to offer plenty of opportunities, and that dips are to be pounced upon, especially considering how we have seen so much in the way of explosive movement. I think that the market is going to offer plenty of opportunities, by simply waiting for signs of support and being patient.

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