GBP/JPY daily chart, October 3, 2016

GBP/JPY Forecast October 3, 2016, Technical Analysis

The GBP/JPY pair initially fell during the course of the day on Friday, but found enough support near the 130 level below, to bounce and form a nice-looking hammer. However, there is a shooting star from the Thursday session that we have to worry about and as a result I feel that this market is probably to continue to grind sideways overall and just above the 130 handle. A move below that level would be massively negative, as it should send this market down to the 125 handle. If we break above the top of the shooting star from Thursday, it could be a short-term buying opportunity, but short-term is the key word there.