GBP/JPY Forecast October 9, 2017, Technical Analysis

The GBP/JPY pair fell slightly during the Friday session, as we continue to find a bit of interest in this pair near the 147.50 level. I think given enough time, the market could rally, but if we were to break down to a fresh, new low I think at that point we will go looking for support near the 145 handle, which is the next major level. Longer-term charts have shown that market level to be an area of interest, so it makes sense that we would turn back around and find buyers in that region. However, if we were to break above the 148 handle, we could continue to rally towards the 149 level. A break above there census market looking for the 150 handle. I believe that is a short-term rally though, so anytime of exhaustive candle above would be and I selling opportunity.
However, 150 is important
The 150 level above is massively important, and if we can break above there I think that the market should continue to be a “buy-and-hold” market. Overall though, I think that’s less likely to happen, so I’m looking for a selling opportunity more than anything else. Keep in mind that the pair does tend to follow the overall attitude of stock markets and risk appetite around the world, so they start to rally, that could give us a bit of a reprieve in the downward pressure. The British pound has been absolutely pummeled as of late due to the ineffectiveness of the Teresa May government, and of course the negotiations with Brussels. Because of that, I think we continue to see a lot of noise in this pair, and therefore will be a bit difficult to trade. No matter what happens, expect noise.