GBP/JPY Forecast October 31, 2016, Technical Analysis

The GBP/JPY pair went back and forth during the course of the session on Friday, forming a bit of a hammer. Ultimately, I think we could rally from here but I believe that the 130 level above is massively resistive. Because of this, I think that any bounce should invite selling on signs of exhaustion, and that’s exactly what I’m going to do. I have no interest in buying, I believe that the 130 level of course is resistive, but I think that resistance extends at least 200 pips above there. Selling from here could be done but there does seem to be a bit of minor support just below.