GBP/JPY Price Forecast November 8, 2017, Technical Analysis

The GBP/JPY pair continues to look very volatile, as we bounce around the 150 handle. The 150 handle of course is a large, round, psychologically significant number, so it’s not surprising that we would have to go back and forth in this area. If we can make a move above the highs during the trading session on Tuesday, that would be a very bullish sign and perhaps sending this market towards the 151.50 level. Alternately, if we break down below the 149 handle, that would be a complete repudiation of price above the 150 handle, and should send this market down to the 140.50 level, and then perhaps down to the 147.50 level. With the massive amounts of volatility, a small position will probably be needed, and that is likely to keep a lot of traders away from this pair.
However, another thing you need keep in mind is risk appetite. Do we have any, and wears a coming from? This is one of the most important questions that you can ask when it comes to the GBP/JPY pair, because it is so sensitive to the risk appetite around the world. Typically, as stock markets rally, the GBP/JPY pair will send this market to the upside. Obviously, the exact opposite is true, and this of course also can be reflected in the geopolitical concerns of the world, as money runs to Japan when we are concerned, and it runs from Japan when people are comfortable. With North Korea on the forefront of thought, it’s possible we may get a sudden move geopolitically. That could be another anchor around the neck of the pair, so keep that in mind. Ultimately, this market is one that needs to be treated with great care if you are going to put money into the market.