GBP/JPY Price Forecast March 15, 2018, Technical Analysis

The British pound initially fell against the Japanese yen during trading on Wednesday but seems to have a bit of support at the 148.50 level. However, just above there is a major trend line from the daily chart that had been broken, so it should now be resistance. We will have to wait and see what happens next, but it is likely that things will be very choppy in the meantime. I think that ultimately, the market will probably try to find its footing in one direction or the other, and at this point I believe that if we can break above the 150 handle, then we can go much, much higher. Otherwise, I suspect that if we break down below the 148 handle, the market roles over significantly.

When you are trading the GBP/JPY pair, you are essentially betting on risk appetite. The better the risk appetite, the better off this pair will do. In other words, follow stock markets and commodity markets, because if they are rallying, typically this pair will rally right along with them. Otherwise, if they are selling off it tends to push money back to the Japanese yen, considered one of the world’s premier safety currencies. I think it’s going to be very dangerous to trade this market over the next couple of sessions, but the good thing about places like this is that we will eventually get our answer as to where the market wants to go longer term. Once we do, we could get a significant move.