GBP/JPY Forecast November 3, 2017, Technical Analysis
The British pound initially tried to rally during the day on Thursday, but after the Bank of England raise interest rates, we rolled over. This is because they cut back the expectations of interest rate hikes from here. Mark Carney said that interest rate hikes should not be thought of as happening quickly, or even automatically, so it’s likely that we will continue to see bearish pressure on the British pound when it rallies too much. We are testing the 149 level as I record this, and that of course is a significant support level. Since we have fallen directly to their, it would make sense that we bounced a bit, but I think that the sellers will return if we get that.
A breakdown below the 149 level should send this market to the 148 handle next, and perhaps even much lower. The 145-handle underneath is the target to the downside, and I believe that the area should continue to be an area where the buyers return. I believe that the market is going to continue to be volatile, and of course it is going to be very highly sensitive to risk appetite around the world, so pay attention to the stock markets and commodity markets overall, as it can give us an idea as to where this pair may go. Remember, this pair moves rather rapidly, so we could get a sudden flush, before some type of capitulation bottom. With the jobs number coming out today, this could be very interesting as well, as it tends to move up and down with the risk appetite after that announcement also. Quite frankly, this could be a very dangerous currency pair over the next several sessions after this surprising statement from the Bank of England.
GBP/JPY Video 03.11.17
This article was originally posted on FX Empire