GBP/JPY Price Forecast December 13, 2017, Technical Analysis

The British pound went back and forth during the trading session on Tuesday, hovering around the 151.50 region. If we can break above the 151.85 level, I think the market should then go to the 153 handle above. That is an area that is massively resistive, and if we can get a break above that level on the daily chart, I think that the GBP/JPY pair will continue to go much higher. Because of this, it’s likely that we will continue to see the market reach towards the 155 handle above, which of course is a large, round, psychologically significant number. Pullbacks from here should continue to find plenty of buyers, especially near the 150-handle underneath, because the structural support has been reliable. I think if we were to break down below the 150 handle, the market could drop to the 147.50 level after that.
Expect volatility, and keep in mind that this pair tends to often mimic risk appetite around the world, especially stock markets. If they continue to rally, eventually this pair will climb, as people move away from the Japanese yen, willing to take on more risk. I believe that eventually we will break out to the upside, but right now it looks as if the market is relatively stagnant, so way for some type of impulsive move to put money to work when it comes to the GBP/JPY market. Once we get that move, I believe there will be a significant amount of follow-through on that move, because it will show that we have impulsively moved, and that there is a lot of momentum building up in the market.