GBP/JPY Price Forecast November 14, 2017, Technical Analysis

The British pound gapped slightly lower at the open on Monday, turned around to fill that gap, and then rolled over rather significantly. The 150 level looks to be very resistive, and I think that it’s only a matter of time before we see the market roll over again. We have made a fresh, new low, and I think that the markets will eventually get an opportunity to short this market again, if we get some type of exhaustive candle. It’s not until we break above the 150.25 level that I feel comfortable going long at this point, as it would be a “higher high” in the market. If we can break above there, then the market probably goes looking towards the 152 level. Alternately though, if the bearish pressure continues, I suspect that the 148 level will be challenged again for support, and then eventually we will break down to the 147 handle. This market is very sensitive to risk appetite, so pay attention to that. As I write this, we are starting to see a significant amount of bullish pressure, but we are still a long way from reversing the selloff that occurred at the beginning of the session.
There continues to be a lot of noise around the British pound, as Teresa May is suddenly looking at several MPs that want her gone. That shows a little lack of cohesion, and that does not help as the United Kingdom is looking to leave the European Union. There is a significant amount of uncertainty when it comes of this, so the British government needs to have a sense of unity. We are far from there, so I think that this could continue to be a bit of an anchor around the neck of the pound.