GBP/JPY Price Forecast November 22, 2017, Technical Analysis

The British pound has been very choppy over the last 24 hours against the Japanese yen after initially surging higher on Monday. However, we are starting to see a bit of resistance above, and is not until we break above the 149.50 level that the market is free to reach towards the 150 handle after that. I believe that the 150 handle is a massive “ceiling” in the market, so I’m very hesitant to buy this pair until we get above that level. In the meantime, I’m looking for exhaustive candle’s and rollovers to start selling this market. In fact, as we have drifted a little bit lower during the day on Tuesday, I think we may be getting ready to see that. That should send this market looking down to the 147.75 handle again, and perhaps even lower if history is any indicator.
The British pound of course is highly sensitive right now to headlines involving the negotiations between London and Brussels, but this pair is also very sensitive to risk appetite. If we start to seat trader selloff stock markets and commodities, that could send this market lower as well, running to the relative safety of the Japanese yen. Alternately, if we were to break above the 150 handle, the market continues to go higher from there, and my target would be the 152.50 level above which has offered resistance in the past. Ultimately, this is a market that will remain very volatile and choppy, and not the least of which: dangerous. Small position size is crucial, at least until we break down or break out with some type of significance. Volatility will be very sudden and brutal at times, but that is typical of this pair in general.