GBP/JPY Forecast October 12, 2017, Technical Analysis

The British pound initially dropped during the trading session on Wednesday, but found enough support near the 148 level to turn around and rally again. It looks likely that we will continue to see a lot of volatility in this market, especially considering that the FOMC Meeting Minutes will of course have a lot to say when it comes to the risk appetite of stock traders, which of course will influence this currency pair. On a break above the 149 level, I think we then go to the 150 handle after that. Alternately, if we break down below the 148 level, we probably go looking towards the 147-level underneath. That level should continue to be very supportive, but a breakdown below there would be very negative for this market, perhaps sending the market down to the 145 level.
Ultimately, the market should continue to reach towards higher levels though, and if the stock markets continue to show signs of volatility, but more importantly, positivity, I think we will see this market rally going forward. If we can break above the 150 level, the market should continue to reach towards the 155 level above, which is the next major round number after that. The market does tend to move rather quickly, so keep that in mind. I think that overall, this market should continue to see plenty of reason to go higher, but if there is some type of geopolitical concerned, say coming out of North Korea, it will make sense that the Japanese yen should continue to rally from there, as we continue to see this market react to not only stock markets, but headlines coming out of both Pyongyang and the United States, which have been a bit silent lately. If that can keep up, we should see buyers continue to jump into this pair.