GBP/JPY Price Forecast February 5, 2018, Technical Analysis

The British pound has rolled over a bit during the trading session on Friday against the Japanese yen, as we reach to a fresh, new high, but then the struggled later in the day. Breaking above the 155 level below was important, so I think that the buyers are going to come back into play, but the reality is that this pair tends to be very volatile, so don’t be surprised if we get a lot of huge moves. I think that eventually we could go to the 160 level, but it’s going to take several days, if not weeks to get there. The recent rally has been very strong, so I don’t think that we are going to see a massive correction, but a pullback should offer plenty of value.

Looking at a longer-term chart, I have a target of 163, but I think it’s going to take a long time to get there, so I think that these pullbacks offer buying opportunities, and I would add to a core position in small increments every time I could. This is a market that continues to be very noisy, but that’s typical of “the Dragon.” Remember, risk sensitivity is a major driver of where this pair goes, not to mention the GBP/USD pair, as it shows the underlying strength of the British pound. Make sure they all lineup to higher levels for throwing a lot of money at this pair, but if they do, this pair typically performs quite nicely in reaction.