GBP/JPY Price Forecast November 20, 2017, Technical Analysis

The British pound was very volatile during the trading session on Friday, initially tried to rally, but then broke down significantly against the Japanese yen, testing the 148 handle. That’s an area that has been important in the past, so it doesn’t surprise me at all that we are stalling a bit here, but if we break down significantly below the 148 handle, that opens the door to the 145 level. The market has been making a series of “lower highs”, and that of course signifies that there is building downward pressure. I have no interest in buying this pair, because every time it rallies it seems like the sellers are willing to come back in full force. However, if we were to break above the 149.50 level, that would signify a massive shift of attitude, and perhaps an attempt to break above the 150 level after that.
In general, I believe that the market will continue to be very choppy, and I believe that a lot of risk on attitude will continue to be bullish, while a risk off would be negative. In general, the markets will continue to be very noisy, so using a smaller position is probably the best way to go, as the volatility can be very dangerous for your trading account. However, I think that we still should air on the side of caution, meaning that we should sell and not buy in general. The market is one that is highly sensitive to stock markets in general, so pay attention to the S&P 500, the FTSE 100, and the Nikkei. I think that if they get a bit of a boost, this market could rally. However, if they sell off, and they are all overextended, that could send this market much lower.

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