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

The British pound has been very noisy against the Japanese yen during the trading session on Tuesday, as we continue to hang around the 152 level. This is an area that’s been attractive over the last couple of days, but when I look at the noisy area that we’ve been trading in, I believe we are trying to form some type of support. That support could send this market looking towards the 155 handle, but keep in mind that this pair does tend to be very risk sensitive, meaning that we need to see strength in other markets to have traders comfortable enough to buy and hold this position.

If we don’t get it, the market will more than likely go looking towards the 150-level underneath, which is even more structurally supportive than the area that we are testing right now. So, because of this, I have an upward bias in this pair, but I need to see the stock markets take off to the upside, and perhaps even the commodity markets so that we can feel bit more comfortable taking on risk, I think that it’s time to start buying this pair again. In a sense, it’s likely that you will find a direct correlation in these other markets with this pair as per usual. With so much support below, I believe that it’s likely we continue to find buyers eventually but be patient and let the market prove itself to you. We are making “higher highs”, so that’s a good sign. Scale into your position, don’t jump in with all your money in one trade.

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