GBP/JPY Forecast September 29, 2017, Technical Analysis

The British pound went sideways initially during the Thursday session against the Japanese yen, but then rolled over to test the 150.50 level again. We bounce from there, and it now looks as if the British pound is going to continue to go higher. I think that given enough time we will go looking towards the 152.50 level above, which should be a resistance barrier as well, as we have seen in the past. Given enough time, I expect this market goes to the 155 handle, and then perhaps break above there for a longer-term move. I believe the pullbacks continue to be buying opportunities, and I also recognize that the 150 handle should be more of a floor than anything else in this market. This is a market that looks likely to see buyers on dips, as we have seen for some time.
Buying those dips
I continue to buy dips in small incremental pieces so that I can build a large position over the longer term. I believe that the market is one that has broken out to the upside, and that we should continue to be bullish over the longer term. After all, the Bank of England looks likely to raise interest rates, while the Bank of Japan is light years away from doing so. This pair is highly sensitive the risk though, so keep an eye on stock markets and the like as they can have an influence on this pair, and not from these 2 economies necessarily. Because of this, it’s likely that the market will react with the overall global attitude. I believe that given enough time, the buyers return unless of course things change drastically, which currently doesn’t look to be very likely as the global economy seems to be growing.