GBP/JPY Price Forecast November 10, 2017, Technical Analysis

The British pound fell rather hard against the Japanese yen during the trading session on Thursday, testing the 148.50 level again, and then bounced about half way back. As I record this, we are starting to see softening yet again, and if we can break down to a fresh, new low, I think that the market will probably go looking towards the 148 handle, and eventually the 145 level after that. The 150 level above should still be thought of as a bit of a “ceiling” in the market, and if we stay below that level, it’s likely that we will continue to see sellers. If we were to break above it, that would be a change in momentum, and something that I would have to pay a lot of attention to. At that point, I would be a “buy-and-hold” type of traitor to the 152.50 level. However, in the meantime it looks as if the sellers are more likely to get there way, so selling the rallies could be a way to take advantage of the market.
I believe that the British pound in general is going to be very choppy, so this pair should be treated with great care. That is typical for the pair anyway, but with the British pound being shrouded in so much uncertainty, it makes sense that we will get violent moves in both directions, the don’t necessarily coincide with the other Japanese yen related pairs. The markets look likely to try to favor the downside, but that doesn’t necessarily mean that it’s going to take off to the downside as quickly as you would like. It is because of this that I suspect trading half-size positions will probably be the smartest thing that you can do over the next several days.