GBP/JPY Forecast October 26, 2016, Technical Analysis

The GBP/JPY pair went back and forth during the course of the session on Tuesday, forming a fairly neutral candle. We continue to grind sideways overall, so having said that I am not overly excited about trading this market. I suggest that the market will probably bounce, but I think there’s plenty of resistance above to keep the market down. The 130 level is essentially the “ceiling” in this market, so any rally at this point in time will more than likely fail. With that in mind, I’m looking to sell though short-term rallies that show signs of exhaustion.