GBP/JPY Price Forecast November 9, 2017, Technical Analysis

The British pound fell rather precipitously during the trading session on Wednesday, breaking below the lows made several sessions back. By doing so, this looks as if it is a momentum building exercise, and that the short bounce that we have seen since then will more than likely end up being and I selling opportunity. The 150 level should be thought of as a “ceiling”, and it’s not until we break above there that I would feel comfortable buying. Although we have barely made a fresh, new low, the fact that we did it so quickly tells me that we most certainly have a lot of bearish pressure built in. There will be a lot of volatility in this pair, that’s the norm.
Keep in mind that this pair does tend to fall when there are concerns about global growth, geopolitical concerns, or stock markets falling in general. I think that any of these 3 things can happen, and it’s likely that it’s only a matter of time before we start selling again. I’m looking for signs of exhaustion, and I will be taken advantage of those to the downside. However, I’m the first person to suggest that a move above the 150.50 level is an extraordinarily bullish sign, and would have me going long again. I don’t necessarily think that there’s a meltdown coming in the near term, but I do think that there’s a general malaise that is starting to creep into the marketplace. That is something that I think you can take advantage of occasionally, trading for short-term dips over the next several sessions. I suspect that the 148 level might be mildly supportive, but I see much more support at the 145 handle on the longer-term chart.