GBP/JPY Price Forecast November 24, 2017, Technical Analysis

The British pound chop around against the Japanese yen during the session on Thursday again, testing the 148 handle for support. So far, it has found it there, and I think that support extends down to the 147.50 level. Because of this, it’s likely that we could bounce but I think that the general downtrend continues, and that as we rally, it’s more than likely going to attract more selling pressure. While the British pound has shown some signs of strength, the reality is that this pair is much more attuned to risk appetite around the world, which seems to be flattening out a bit. A quick and nimble trader could trade back and forth between the 149.25 level in the 148 handle, but quite frankly this pair does have a history of breaking out rather violently in one direction or the other, and I do not want to be on the wrong side of that trade.
If we were to break down below the 147.50 level, I think at that point it opens the door to the 145 handle. That of course is a large, round, psychologically significant number that should attract a lot of attention. However, I think that we are in more of a choppy yet slightly negative market overall, so a rally from this area would not surprise me. I would look near the 148.50 level for the next selling opportunity, and of course the 149 level after that.
Don’t forget to pay attention to the GBP/USD pair, as it is the benchmark of British pound strength. If we start to see a lot of buying pressure over there, it could translate into higher pricing here as well. Of course, the exact opposite can happen also as you know.