GBP/JPY Forecast March 1, 2017, Technical Analysis

The GBP/JPY pair fell on Tuesday, breaking below the 140 handle. The markets have found support just below at the 139 handle, and therefore we could get a bit of a bounce. More importantly, I need to see the market break above the top of the hammer from the Monday session to serve buying. If we break down below the 138.50 level, the market should then go much lower. Given enough time, I believe that we will break out to the upside but obviously, we have a lot of concerns out there so I would stay on the sidelines until we break out to the upside or form a longer-term bullish candle.