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GBP/JPY Price forecast for the week of November 20, 2017, Technical Analysis

Christopher Lewis
Updated

The British pound fell slightly during the week against the Japanese yen, as it looks like the 150 level is going to continue to offer significant resistance. By rolling over at this level, I think we will go looking towards support at the 147 handle, and then eventually the 145 handle. Remember, the British pound has a lot of unnecessary noise around it due to the leaving of the European Union, so I think that this pair is going to continue to be very noisy indeed. Also, keep in mind that the pair tends to move up and down due to the varying risk appetite. If we get a roll over in the stock markets, that could send this market lower, but on the other hand if we get some type of explosive moved to the upside, this pair should continue to go higher.

This is going to be very difficult market to deal with, but I think we are eventually going to break out. Because of this, you will have to be very careful as the volatility in this market can become very extreme in a very short amount of time. A breakdown below the 145 handle could send this market down to the 140 handle, which is the scene of a potential uptrend line, that could keep this market going higher. I believe that we are going to continue to see a lot of noise in the markets, and this will be a place where it shines. This pullback that I feel is coming should be a nice buying opportunity though, if you are patient enough to wait for a reversal. I do believe that eventually we break out to the upside. In the meantime, small position sizing is necessary.

GBP/JPY Video 20.11.17

This article was originally posted on FX Empire

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