GBP/JPY Price Forecast November 28, 2017, Technical Analysis

The British pound fell against the Japanese yen initially during the trading session on Monday, reaching down towards the 148 handle. The 148 level is slightly important, but I think it’s much more supportive closer to the 147.50 level underneath. If we can break down below there, the market should continue to go down to the 145 level, which of course is much more important from a longer-term standpoint and of course a psychological standpoint. In general, I believe that we continue to see a bit of downward pressure, as it looks like the Japanese yen is starting to pick up value against other currencies again. In general, I believe that the market continues to see a lot of noise, which is typical for “The Dragon”, as it is a very risk sensitive market. That risk sensitivity should continue to be a mainstay of the currency markets, as there are a lot of moving pieces geopolitically.
I believe that perhaps that will be what moves this market next, geopolitical issues. I think there are far too many things going on right now for the markets to continue to go higher without a significant fight. I think that this pair is can be a very interesting to watch, as it could be a bit of a “canary in the coal mine”, as to where risk appetite is going to go. Even if you don’t trade this pair, you should pay attention to it, so you can get an idea as to what to do with the Japanese yen, and perhaps even commodity currencies as they tend to be “riskier.” If we were to break above the 149 handle, then I believe that the market would probably go looking towards the 150 level which is much more resistive.