GBP/JPY Forecast September 28, 2017, Technical Analysis

The GBP/JPY pair has been very volatile on Wednesday, as we continue to bounce around. The 155.50 level was too expensive, but the 150.50 level seems to be offering support. Ultimately, I believe that this market will continue to look at the $150 level as significant, and if we can stay above that level I think that the market will continue to believe in the uptrend. Remember, this pair tends to move higher with more of a “risk on” attitude, and that of course is a scenario that is quite often led by the bond markets, and of course the stock markets. In general, if the stock markets are rallying, the market goes higher. I think that eventually we go to the 153 level, eventually, we will go looking towards the more psychologically significant 155 level.
Volatility should continue to be a major issue, but I think that we will ultimately continue to favor the upside unless of course we get some type of significantly negative geopolitical event. The Bank of England still looks likely to raise interest rates, and that continues to favor the British pound overall. This is especially true considering that the Bank of Japan is light years away from doing anything significant with interest rate. Because of this, I think that there’s plenty of reason to suspect that we are going to go higher. However, in the short term we may be looking at potential buying opportunities so if we get a supportive candle on a shorter-term chart, that might be reason enough to start looking for value and thereby buying this market. If we were to break down below the 150 level, the market been should go looking towards the next major support level at the 148.50 level.