GBP/JPY Price Forecast November 13, 2017, Technical Analysis

The British pound rallied against the Japanese yen during the trading session on Friday, but seems to be struggling at the vital 150 handle. Because of this, it’s likely that we will see a bit of a pullback, and I think that it makes sense that the market would struggle at that level, as it showed a significant amount of resistance in the past. I think a pullback to the 149.25 level is likely, where I expect to see more significant buying pressure. We may be getting ready to go sideways, mainly because of the psychological importance of the 150 level, and of course the British pound itself looking like it wants to consolidate against the US dollar, the benchmark of a currency’s strength. Ultimately, this is a market that I think could break out eventually, so I’m paying attention to the 150.33 level, as a trigger for potential buying opportunities. Otherwise, I anticipate that this market will roll over. You could use the stochastic oscillator or some other type of sideways type of trading system to play this market, but I do believe that longer-term we will eventually find enough buying pressure to go higher. A breakdown below the 148.50 level would be extraordinarily negative and could change that analysis, which is something that I will visit when the time comes.
If we do breakout to the upside, I would target the 152 level above, as it offered significant resistance in the past. Longer-term, we could go as high as 155 and even 160, but that’s probably going to take a significant external influence from a “risk on” market or something to that effect. The market would then offer a “buy on the dips” attitude, allowing you to multiply your position size.