GBP/JPY Price Forecast March 13, 2018, Technical Analysis

The British pound has been noisy in general during trading on Monday, especially against the Japanese yen. However, it looks as if we are trying to build up a significant bullish momentum type move in this market, but as we are still below the 149 level, I think that we have a lot of work to do. If we can break above the 149 level, I think we then go to the 150 handle. A move above the 150 handle frees the market to go much higher, perhaps 155 next.

In the meantime, I would anticipate that short-term pullbacks will continue to be an issue and could present themselves occasionally. I think that the 147-level underneath is the first level of support, followed by the 146 handle. Ultimately, I believe that the “floor” in the market is the 145 handle. If we were to break down below the 145 handle, that would break the market down significantly and reach lower towards the 140 handle. I expect a lot of volatility, but keep in mind that this pair is highly sensitive to risk appetite, so pay attention the stock markets. If stock markets start to rally, it’s likely that the GBP/JPY pair will continue to go higher. Alternately, if they fall apart quite often this pair will fall. Keep that in mind, and then pay attention to the levels that I mentioned previously in this article as they could be the guideposts as to where we go next.

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