GBP/JPY daily chart,October 7, 2016

GBP/JPY Forecast October 7, 2016, Technical Analysis

The GBP/JPY pair fell slightly during the day on Thursday, but bounced enough to form a bit of a hammer. I think we’re trying to form some type of base down here, so pullback should be a buying opportunity as long as we can stay above the 130 handle. Alternately, if we can break above the 132 handle, the market should then go to the 135 handle given enough time. Keep in mind that the Bank of Japan is trying to work against the Japanese yen, so with that being the case I think sooner or later the support comes back into play.