GBP/JPY weekly chart, October 17, 2016

GBP/JPY forecast for the week of October 17, 2016, Technical Analysis

The GBP/JPY pair initially fell during the course of the week, but found the 125 level supportive enough to cause a bounce and form a bit of a hammer for the weekly candle. This is preceded by a hammer like candle as well, so I think we are going to see a bounce in this pair. However, keep in mind that the 130 level will be resistive, so with this it’s only a matter of time before the sellers return. Ultimately, it might be a little bit tight for longer-term traders to be involved.