GBP/JPY Price Forecast February 14, 2018, Technical Analysis
The British pound broke down against the Japanese yen during the session on Tuesday, slicing through the 150 handle. That of course is a psychologically important level, and then broke down below that level to reach towards the 149 handle, the bottom of the support zone. If we break down below the 149 handle, I think this pair goes lower. We have bounced from the 149 handle but rolled over before we got to the 150 handle during the day. It is because of this that I have some concerns about the viability of support. If we can break above the 151 handle, then I will be convinced that we are going higher.
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Otherwise, I would step aside and wait to see if we break down.If we break down, then the next support level that I see is near the 148 handle. Below there, I think there’s even more interest in the market at the 147.50 level, so this point caution is a better part of valor, as we have a potential move happening, but by allowing the market to make that move before we put money to work, it gives us a better chance of being profitable. If you place a trade at this point, you will be basically guessing as to where we go next. Guessing of course is no way to trade, especially with this pair as it tends to move rather quickly.