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GBP/JPY Price Forecast February 14, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 14, 2018, 05:36 UTC

The British pound has fallen against the Japanese yen during the trading session on Tuesday. We broke down below the 150 level and tested the recent lows. As I record this, we are trying to bounce from here, but quite frankly I think we have the potential for a very negative move if things don’t change soon.

GBP/JPY daily chart, February 14, 2018

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.

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.

GBP/JPY  Video 14.02.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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