GBP/JPY Forecast October 2, 2017, Technical Analysis

The British pound fell against the Japanese yen on Friday, but remains above the vital 150 level. This is an area that I expect to see a lot of support at, because quite frankly it was such resistance. Also, there’s a certain amount of psychological support due to the round large number, but even if we were to break down below here, I think that there is plenty of support of the 148.50 level as well. Because of this, I’m looking for some type of bounce or supportive candle to start going long. Global equities rising of course can help this market, just as commodity markets can although somewhat indirectly. This is a risk appetite driven market, and therefore the better the global markets are behaving, the better this pair behaves.
If we do rally from here, I would expect to target the 151.50 level, and then eventually the 152 level. Longer-term, I think were going to go looking for the 155 handle. At this point, it’s not such a question as to whether or not I’m going to buy this pair, it’s more or less a question as to where I’m going to buy it. Because of this, I will be patient but I am willing to take advantage of any bounce or supportive move that since this market to the upside. Ultimately, this is a market that should continue to find buyers and could get the help from stock traders, commodity traders, or even bond traders. I look at pullbacks has value, as the Japanese yen is on its back foot in general, and of course the British pound as the threat of interest rate hikes coming out of the Bank of England relatively soon. With this, it’s likely that longer-term we will find buyers.