GBP/JPY Price Forecast January 30, 2018, Technical Analysis

The British pound rolled over against the Japanese yen during the trading session on Monday, showing signs of negativity rather rapidly. However, I think that the market pulling back like this is a bit difficult, and it’s almost impossible to jump in with both feet as the volatility can be a major issue. I think that the market will continue to show a lot of noise, but that’s nothing new with the “Dragon”, as it is so highly sensitive to risk appetite around the world. The stock markets rally, it typically goes higher as well. I think that the 155 level above is a target, but I also recognize that we have broken above that level before. I think that we are trying to build a bit of a base, but it could take several days to flush out. If we break down below the 152 handle, it’s likely that the market breaks down to the 150 level, which is much more supportive. Ultimately, I believe that we will find buyers, but it’s going to take a while to happen.

The British pound is starting to show signs of life against other currencies, so it’s likely that we will continue to be a bit resilient, but not so much that I’m willing to put money to work. Above the 154 level would bring in fresh, new money, and I do think that happens given enough time, but in the meantime, I’m on the sidelines.

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