GBP/JPY Price Forecast November 30, 2017, Technical Analysis

The British pound rallied against the Japanese yen again during the trading session on Wednesday, breaking above the 150 level. That if course is a very bullish sign, and it suggests that we are starting to clear rather significant selling pressure. Because of this, it’s likely that we go to the next psychologically important level at the 152.50 level, but we could be a bit noisy between here and there. After all, we have seen a significant move higher, so it’s likely that it’s going to take a bit more in the way of momentum to gain these last 250 pips. Pullbacks offer buying opportunities, and if the 150 level can hold as support, we could see a very large move shortly.
Ultimately, if we break down below the 150 handle, we could see a move back to the 149.50 level, where I see a lot of order flow based upon the momentum that picked up on the hourly chart. We also tested it on the short-term pullback recently, so it’s possible that we have already seen that retest. I like the idea of going long this pair, but I also recognize that it can be very volatile, so you should be careful with your position sizing and of course make sure your stop losses are at an obvious place such as the 149.50 range. This market can move rather quickly, so don’t be surprised by that, but longer-term, this market certainly looks very healthy.
If we did breakdown below the 149 handle, I would be very concerned at that point, because it would be a complete reversal of what has been a very strong move. That would have me on the sidelines, because it would muddy the picture to the point of it being very hard to interpret.