GBP/JPY Price Forecast November 16, 2017, Technical Analysis

The British pound fell initially during the session on Wednesday against the Japanese yen, reaching down to the 148 handle which has offered support. I think we could eventually break down below there, and once we do we will more than likely go down to the 147.50 level, and then eventually the 115 handle after that. This is a market that is very volatile, but has been grinding its way to the downside as of late, so I’m not interested in buying until we clear a couple of barriers. As I record this, we are testing the 149 handle, which should be resistive. If we can break above the 150.25 level, then the market is one that I’m willing to buy. However, I think that this market favors the downside, so simply waiting for some type of exhaustive signal is probably the best way to go, as then you can start selling. However, a move above the 150.25 level certainly sends a signal that the buyers are starting to jump all over the market.
I suspect that there will be continued volatility, and that should continue to cause this market to be very difficult to get a handle on. Remember, this market is driven by risk appetite, which seems to be waning a bit lately. I don’t think that were going to get some type of massive breakdown, but certainly at this point it looks as if the downside is likely to be favored, and is not until we get a clear signal that we are going higher than willing to risk money to the upside. The British pound has its own issues anyway, so out of all the yen related pairs, this one has the most negativity hanging over it currently.

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