GBP/JPY Price Forecast January 23, 2018, Technical Analysis

The British pound has rallied rather stringently against the Japanese yen during the trading session on Monday, breaking above the 154 handle. We are now testing the 155 level, and although I expect this area to be somewhat resistive, I also anticipate that the market would continue to go higher. Once we clear that area, it should continue to go to the 160 level above, which is much more structurally important. After all, this has been a very strong move and what would have been a relatively quiet currency trading day.

Pullbacks offer value, and I think that the 153 level now is a bit of a floor. If we break down below there, then it’s likely that we would breakdown rather significantly, perhaps reaching down to the 150 handle to find even more support. In the meantime, I look at these pullbacks as an opportunity to pick up the British pound “on the cheap”, as it is obviously taking off. Remember, this pair moves with overall risk appetite as well, and tends to follow stock markets around the world. With the GBP/USD pair approaching the vital 1.40 level, if we get a breakout above that level and that pair, the GBP/JPY pair should skyrocket as it is much more volatile

I suspect that the later we get into this week, the better this pair will do as money comes back to work from the weekend. I would add on dips going forward and trying to take the most value out of this trade as possible, as we clearly have bullish pressure, and this pair can move rather rapidly in your direction if you are positioned correctly.