Yahoo Finance GBP/JPY Price forecast for the week of December 11, 2017, Technical Analysis
The British pound was very volatile during the week, as we have seen a lot of headlines move the market around. Ultimately, it’s likely that the deal breakthroughs between the United Kingdom and the European Union has given us a bit of relief. Unfortunately, the 153 level has been massively resistive in the past, and it did hold during the week. That being said, if we can break above the top of the range for the week, I feel that the market is probably going to continue to reach towards the 165 level above. There is a lot of noise between here and there though, so expect a lot of noise on the way up. In the meantime, I anticipate that the 150 level will continue to be supportive, and perhaps the support extends down to the 148 handle.
In general, this is a market that is waiting to prove itself to the upside, and I think eventually we will get there. However, we need to see the British pound breakout in general against other currencies, and perhaps more of a “risk on” environment is necessary. Towards the end of the year, we quite often see a bit of a Santa Claus rally, especially in the stock markets. It’s likely that it would have a knock-on effect over here, but being patient and waiting for the break out is probably the hardest part of trading this market. In general, the volatility will continue to be difficult, but if you wait for the obvious move, then you need to be patient enough to not only take the position, but hang on to the potential profit producing position. If we were to break down below the 148 level, at that point I think we go down to the 145 handle where we would reset the bullish attitude.
GBP/JPY Video 11.12.17
This article was originally posted on FX Empire
