GBP/JPY Price Forecast February 28, 2018, Technical Analysis

The British pound initially rallied against the Japanese yen on Tuesday but found enough resistance just below the 150 level to turn around and pull back to the 149 handle. I think that’s going to be the theme of this market, as we continue to struggle to find clarity. The market is likely to eventually break out or breakdown depending on risk appetite in other markets, and that being the case it’s likely that the move, when it comes, will be very aggressive.
I believe that we are currently in a 300 pips trading range, with the 148-level underneath is massive support, while the 151 level above is massive resistance. I think if we can break above the 151 handle, I think that the market then goes looking towards the 155 level. Alternately, if we break down below the 148 handle, the market goes down to the 145 level. Ultimately, I think that between now and that breakout, you will probably be best served either staying on the sidelines or trading short-term charts in a back and forth manner, recognizing that these levels will have a massive influence on where the market goes.
Ultimately, the market will be difficult to deal with, so I would keep my position size small until we get the break out or the breakdown, and then add at that point because it gives you momentum to work with. Scalpers might like this market in the meantime though, with obvious boundaries in place.

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