GBP/JPY Price Forecast January 8, 2018, Technical Analysis

The British pound continues to be very volatile, but we have obviously seen great gains against the Japanese yen. By breaking above the 153 handle, we are hitting a fresh, new high on the weekly chart, it’s likely that we are going to continue to see buyers jump into this market place, as this pair looks likely to go looking towards the 153 handle above. That’s an area that will attract a lot of attention, as we see plenty of interest in the British pound overall, as the headlines coming out of the negotiations will of course move the marketplace.

I believe that the 153 level now is the “floor” of the market, and that short-term pullbacks will continue to offer buying opportunities in a marketplace that has been very noisy, and is known to be very explosive at times. I think that the market will have a bit of a reaction to the 155 handle, but looking at the weekly chart, I think we could even go higher than that, perhaps the 160 handle. There will be a course at the occasional pullbacks, but those pullbacks should be thought of as value. It’s not until we break down below the 152.50 level that I would be concerned about the move to the upside. Overall, I am very bullish of this pair and I think we have hit the bottom, and are starting to see the next phase higher just waiting to happen as “risk on” becomes the mantra.

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