GBP/JPY Price Forecast December 19, 2017, Technical Analysis

The British pound has rallied on Monday, showing signs of life again against the Japanese yen, as the 150 level looks to be supportive. Ultimately, I think that the market will continue to go higher, now that we have seen enough buying pressure at the 150 level to turn things around. In general, I believe that the market will probably go looking towards the 153 level again, which is the massive resistive that is keeping a bit of a lid on the market. A break above there is a longer-term “buy-and-hold” signal, with the first bit of resistance showing up at the 155 level. I think that the market will continue to be very noisy and choppy, but that’s typical for this pair as it is so sensitive to risk appetite and headline news.

Keep in mind that the British are currently negotiating and exit from the European Union, so this could cause a significant amount of noise, but in the end, it’s likely that we will see this pair break to the upside, perhaps in relief as to a deal finally being done. This is also a pair that is highly sensitive to risk appetite, so if we get strong rallies in stock markets around the world, that could be reason enough for this market to rally as well. Alternately, if we were to break down below the lows on Friday, that would of course be a negative sign, and could open the door to the 148.50 level below. That area has been supportive in the past, and it would make a nice short-term target for those selling.