GBP/JPY Forecast September 21, 2017, Technical Analysis

The British pound went sideways initially during the trading session on Wednesday but started to pick up as the Americans took over. The 150-level underneath should continue to offer a bit of support, as it is a large, round, psychologically significant number, and it of course has attracted a lot of attention in the past based upon historical trading. If we were to somehow break down below the 150 level, I think that the market will find plenty of support at the 149.50 level as well. The market continues to be one that is heavily influenced by risk appetite, and if that can remain relatively high, I think that this market has a bright future and we should continue to see buyers. Pullbacks should continue to offer buying opportunities, but I think dips will be the norm, mainly because of the volatile nature of this market.
Longer-term targets
I believe that we will eventually go looking for the 160 handle, especially if the GBP/USD pair breaks out to the upside. We are presently testing a significant resistance barrier against the US dollar, so I think that if the British pound takes off to the upside then, it’s likely that it will transfer and higher prices over here. Given enough time, this market should continue the longer-term uptrend that we are presently seeing. If we were to break down below the 148.50 level, then I think the market could drop significantly, probably down to the 145 handle. However, this is a market that should continue to react to stock markets and the risk appetite around the world, which seems to be relatively high. Therefore, I think that we have a significant upward bias, especially after this recent consolidation. Measuring the rectangle, I suspect that we are going to go looking for the 153 level in the short term.