GBP/JPY daily chart, October 12, 2016

GBP/JPY Forecast October 12, 2016, Technical Analysis

The GBP/JPY pair initially tried to rally during the day on Tuesday, but then fell rather significantly and towards the 126 handle. Ultimately, I believe that this market will test the 125 handle below and that short-term rallies will be selling opportunities on short-term charts. I believe that the 130 level above is the “ceiling” in this market, and that the market will eventually break down below the 125 level and reach even lower levels from there. I have no interest whatsoever in buying this market as it continues look very bearish.