GBP/JPY Forecast November 16, 2016, Technical Analysis

The GBP/JPY pair initially fell on Tuesday, but turned around to form a hammer. The hammer is a bullish sign, and as a result I think that the market is going to continue to try to grind to the upside. Pullbacks should be supported, and I believe that the 130 level below is massively supportive. However, I also recognize that the British pound itself is fairly weak, so I don’t think that it’s going to be an easy move to the upside. Nonetheless, I’m staying away from selling opportunities. Unless you can deal with some type of massive volatility, it’s probably best to stay away.