GBP/JPY Price Forecast February 2, 2018, Technical Analysis

The British pound has rallied a bit during the day initially, only to turn around against the Japanese yen. Remember, this pair is highly sensitive to risk appetite and with the jobs number coming out today, it’s likely that we should see a lot of noise. I believe that the 155 area is going to be supportive, so it’s probably only a matter of time before the buyers get involved. After all, it was an area that’s been important in the past, and we have broken out to a fresh, new high during the day. If we can stay above the 154 handle, I think it’s only a matter of time before the buyers jump in.

If the jobs number is good out of the United States, that should put a bit of a “risk on” attitude into the market, and ironically should push this pair higher. It won’t necessarily be the British pound that everybody wants, it’s just that they won’t want the Japanese yen. At that point, I would anticipate that the market will go looking towards the 157.50 level but remember that this pair tends to be extraordinarily volatile and noisy, so you will have to be able to deal with violent pullbacks occasionally to benefit from the move. That can be seen by looking at the last couple of days quite frankly. I don’t have any interest in shorting.