GBP/JPY Price Forecast November 23, 2017, Technical Analysis
The British pound fell significantly during the day on Wednesday against the Japanese yen, as the Japanese yen strengthened in general. Because of this, we have reached down towards the 148 handle, where we are trying to stabilize. This move is interesting to me, because if the 148 level offers enough support, that could begin a range of consolidation more than anything else. Recently, we have been drifted lower in general, and I still favor the downside, but I also recognize that if this latest low ends up being higher than the previous one a couple of days ago, that could be a sign that momentum is starting to shift again. I still think that the 150 level above is a massive ceiling, so it’s difficult to buying this market for any length of time beyond a quick trade until we clear that area. However, if we break down below the 148 level, I think we will go to a fresh, new low, perhaps the 147.50 level. Rallies that show signs of exhaustion, well those are going to be selling opportunities as well. Remember, this is a risk sensitive pair, so if stock markets and risk appetite roles over, this pair should do the same.
However, if stock markets and risk appetite rises, that also influences this pair, and could make it go looking at the 150 level for an escape route. A break above that level has this market going to the 152 level next, and could begin more of a “buy-and-hold” scenario, or at least a “buy on the dips” scenario in this market. I believe that all things involving the British pound are going to be a bit rough to deal with over the next several weeks, so don’t be surprised if we go nowhere.
GBP/JPY Video 23.11.17
This article was originally posted on FX Empire