GBP/JPY Price Forecast February 22, 2018, Technical Analysis

The British pound has pulled back significantly during the trading session during European hours on Wednesday, but as you can see, the Americans have come in and trying to pick this pair backup. As I record this, we are teetering around the 150 handle, and I think that we will probably rally and continue to go higher. However, I think that the market should continue to be very noisy, so I would be very cautious about jumping in with both feet, and I would add once the market starts to move to the upside and prove you’re a long position correct. I recognize that the 151 level above is significant resistance, and therefore it’s probably going to be a situation where we could see a lot of volatility, and perhaps several opportunities to build your position up slowly.
If we were to break down from here, I think there’s significant support at the 149 level, and again at the 148.50 level. I believe that the market is currently trying to form a bit of a base, and that is almost always a very noisy affair. However, longer-term it does but quite well for this pair, and it should send buyers looking to much higher levels. Pay attention to the risk appetite around the world, namely in the stock markets, because this pair tends to follow where the S&P 500, FTSE 100, Nikkei, and many other of the major indices around the world go. If they rally, then typically has people selling the Japanese yen, and that by proxy will lift this pair.

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