GBP/JPY Price Forecast February 6, 2018, Technical Analysis

The British pound has gone sideways initially during the day on Monday, but then broke down below the 155 handle, reaching down towards the 154 level. I still see the 155 level as ultimately important, and therefore it will attract a lot of attention. If we can clear the 155.40 level, then I think we will not only reach the highs again but go much higher after that. Longer-term, the market should then go to the 160 handle, and then eventually the 162 level as the longer-term chart seem to dictate.

New if we broke down below the 154 handle decidedly, we will probably go down to the 152.50 level. In general, I believe that we may get a little bit of sideways and soft action in this market, as there seems to be a bit of a “risk off” attitude to the markets today. Ultimately, the market should continue to be very noisy, and I think that could offer nice opportunities to get involved to the upside but in small bits and pieces. If we can get some type of rally in the stock markets, that could have people jumping into this pair as well, as it tends to move with risk appetite. Over the next couple of days though, it looks as if we are going to get a lot of volatility in the stock markets, so that will probably keep this pair a bit difficult to jump into with both feet.