GBP/JPY Price Forecast March 14, 2018, Technical Analysis

The British pound has rallied again during the trading session on Tuesday, breaking above the 149 handle, and beyond that has even broke above the uptrend line that had previously lifted the market. Now that we are back above that line, I suggest that we are going to go to the 150 handle, an area that should be important in general. I think that a break above the 150 level will signify that we are going to go much higher, perhaps reaching towards the 152.50 level, and then eventually the 155 handle. Remember, this pair is highly sensitive to risk appetite, so we will need to see buyers in the stock markets and the commodity markets to lift this pair, as the “risk on” attitude of markets tends to sell off the Japanese yen in general.

At this point, I like buying pullbacks, I believe they offer value the traders will continue to look for. The 148-level underneath will be massive support, and at this point I look at it is the short-term “floor” in the market. I believe that it could be very noisy, but once we get to break out to the upside it should be a very huge move just waiting to happen. This pair tends to be very volatile at times, so keep that in mind and keep your position size appropriate for this type of market.

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