GBP/JPY Price Forecast December 1, 2017, Technical Analysis

During the session on Thursday, the British pound started just above the 150 level against the Japanese yen. This was a psychological barrier that I always thought was can be difficult to cross, but now that we have done so, and then shot much higher, it’s likely that we continue to go towards the 152.50 level over the longer term. Now that the market has seen such impulsively, I believe that short-term pullbacks continue to be buying opportunities in a market that certainly is influenced by risk appetite around the world. Stock markets in general are doing fairly well, with perhaps the major exception being the NASDAQ 100, and somewhat ironically the FTSE 100. However, it might be the British pound strength that is weighing upon the FTSE 100, so perhaps it’s more correlated than one would think at first look.
I suspect that the 150 level underneath is now the “floor” in the market, and that if we can stay above that level, it’s likely that we will see buyers coming back into the market and taking advantage of value on those dips. If we were to break down below the 150 handle, and more specifically the 149.50 level, then I think the market probably continues to drop from there, and perhaps towards the 147 level after that. Expect volatility regardless whatever we do over the next several sessions, but I do think ultimately this market continues to see overall bullish pressure, but a pullback might be necessary to take advantage of value so that we can buy this market, as going long at this high level could be a bit dangerous.