GBP/JPY Price Forecast January 25, 2018, Technical Analysis

The British pound has rallied significantly during the trading session on Wednesday, breaking above the 155 handle. That’s a psychologically significant break to the upside, and it’s likely that we will continue to see pressure billed as we have seen so much in the way of bullish pressure over the last several months. I think that the market will probably continue to go towards the 160 handle, and then eventually the 163-handle based upon the longer-term charts. I believe that the market should continue to offer plenty of opportunities on dips, so be aware of this.

As you can see, I have a reasonably reliable uptrend line on the hourly chart, so I think that there should be significant support extending down to at least the 154 handle. At this point, I have no interest in shorting this market, it is obviously very bullish. This is in direct correlation with the overall bullish attitude of risk appetite around the world, and I think that should continue to be the case. In fact, I suspect that this could be one of the better performing currency pairs out there over the next several weeks. If we do break down below the 154 handle, I would be a bit cautious at that point, but would still look for a buying opportunity. It would be based upon value at that point, but still be reason to go long eventually.

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