GBP/JPY forecast for the week of October 30, 2017, Technical Analysis

The British pound initially tried to rally during the week, but it appears that above the 150 level we have far too much in the way of resistance to continue going higher, least in the short term. The resulting weekly candle was a bit of a shooting star, so it’s likely that the market may roll over from here. I cannot help but notice that it appears the Japanese yen may strengthen and the short-term, against several different currencies. The 150 level is essentially one of the larger round numbers that you can come up with, so it makes sense that we would struggle in this area. I do think that there is plenty of support underneath below though, especially near the 145 handle. I think it’s somewhere in that region where we will find massive buying. However, there are a couple of things that you need to pay attention to when it comes to the pair.

Beyond anything else, the drama in the United Kingdom will continue to play out in this pair. Remember, we are still trying to figure out how the United Kingdom looks economically after the European Union exit, so there are a lot of headlines that can move this market. But beyond that, it’s likely that the overall attitude of the markets will have an influence on this pair as well, as it tends to rise in times of confidence, and fall in times of concern. A lot of the equity markets are bit overextended currently, so would not be surprised at all to see this market pull back, at least enough to pull back and form some type of stability and perhaps volume underneath. If we were to break above the 152.50 level, the market then could go higher.

GBP/JPY  Video 30.10.17