GBP/JPY Price Forecast November 6, 2017, Technical Analysis

Unlock stock picks and a broker-level newsfeed that powers Wall Street.

The British pound rallied a bit during the day on Friday, as the jobs number had disappointed quite significantly out of America. However, I see the 150 level above as being significant resistance, and it’s not until we break above there that I’m willing to start buying this pair. If we do get above there, … Continue reading GBP/JPY Price Forecast November 6, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Nov 3, 2017, 11:06 PM

The British pound rallied a bit during the day on Friday, as the jobs number had disappointed quite significantly out of America. However, I see the 150 level above as being significant resistance, and it’s not until we break above there that I’m willing to start buying this pair. If we do get above there, then I think the market goes towards the 151.50 level next. Any type of exhaustion in that area should be an opportunity to start selling again, perhaps reaching down to the 148.75 level underneath. I think that the market will continue to be very volatile, but pay attention to risk appetite in general, as it is a major influence on this pair.

The biggest struggle with the British pound currently is that Mark Carney has suggested that the interest rate hikes coming forward art necessarily automatic, and will be done in a very slow and gradual manner. I believe that the market may have gotten ahead of itself when it comes to the British pound, so that part of the equation, the part where the Bank of England was going to raise interest rates in the near-term, has now been fulfilled and no longer drives to the upside. On the other hand, we have the Bank of Japan looking very likely to stay as monetarily loose as humanly possible, and therefore I think there is can be a bit of a natural proclivity to try to go higher. I think at this point, you need to start paying attention to stock markets more than anything else as both central banks look soft and essentially useless when it comes to interest rate hikes or for that matter, any type of clarity beyond the fact that they are very unclear.