GBP/JPY Forecast Today 30/01: Holds Strong Above ¥190 -Chart

(MENAFN- Daily Forex)

• The British pound has pulled back just a bit during the early hours on Wednesday against the Japanese yen, but we have also seen the market turned around to show signs of life.
• By doing so, the market looks very likely to continue to see more of an upward bias, but I also recognize that this is a market that's been in consolidation for quite some time.
• All things being equal, you should take a look at this through the prism of a market that sees the ¥190 level underneath as a floor, while the ¥200 level above is a significant resistance barrier.

As long as that remains the case, I think we are just simply looking at a market that is going from one major level to the next Analysis

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The technical analysis for this GBP/JPY pair is somewhat flat, but the candlestick for the trading session on Wednesday suggests that we are in fact finding buyers on the dip. The ¥190 level below is going to be very difficult to break down below, and if we did, I think that would be a major turn of events. In that environment, we could drop down to the ¥185 level, but I don't think that's as likely as breaking to the upside and looking toward the ¥195 level. If we can break above there, then the market very well could go looking to the ¥200 level above, which of course is a large, round, psychologically significant figure. It's also an area where we've seen a lot of trouble in the past, so I do think that eventually we try to get there, especially if we see weakness in the Japanese yen overall.

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I think we may be trying to carve out a range for the rest of the year, and we may very well have found it. It'll be interesting to see this plays out, but obviously you get paid at the end of every day to hold this pair, so it does make a certain amount of sense to be a buyer, and not a seller of the GBP/JPY pair.

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