GBP/JPY Price Forecast March 16, 2018, Technical Analysis

The British pound has fallen during most of the trading session on Thursday, rallied a bit from the 140 750 range, but then looks as if it is starting to sell off as well. I think that the market is going to continue to struggle, because we have rolled over so strongly over the last couple of days. A breakdown below the 147 handle opens the door to the 145 handle. I see a lot of noise above that continues to be difficult to overcome, and of course the daily trend line that we had recently tested and failed at shows resistance above. I suspect that a lot of nervousness is entering the markets, and I think we will continue to see this parent drift a little bit lower.

The alternate scenario would be to break above the uptrend line that you can see on the chart that we are below, but even then, we must deal with the 150 handle, which should be massively resistive. Ultimately, the market should continue to be very noisy, but I think that we are starting to see a lot of concerns around the world that could continue to push this pair lower. The Japanese yen continues to strengthen in general, so I think that this pair will of course be more than likely to find sellers. The 145 level will of course be very important due to the large, round, psychological significance of the number. A breakdown below there could send this market down to the 143 level. Expect a lot of noise regardless what happens over the next couple of days.