GBP/JPY Price Forecast January 3, 2018, Technical Analysis

The British pound fell initially during the trading session on Tuesday, but seems to be finding support near the 152 level, an area that has been rather resistive in the past. I think that the market is looking very likely to rally from here, especially if the stock markets start to rally. I believe that this market will continue to attract money, especially over the next couple of days, but I also believe that we are essentially stuck in a bit of a tight range until we get the vital jobs number for December. I believe that the market will probably find plenty of reasons to go higher, based solely upon the expectations of economic growth.

It is not until we break down below the 151.50 level that I think that selling is possible, so therefore I do remain optimistic, but I also recognize that this pair can turn around rather quickly. If we get some type of “risk off” type of event or news, then the market could breakdown rather significantly. Ultimately though, I think that we will see the market reach towards the 152.50 level, and then eventually the 153 handle, which for me is the signal that we are going to go much higher on a longer-term move. Above there, I am not only a buyer, but I would be willing to hold onto a long-term core position. Ultimately, this pair will remain volatile.

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