GBP/JPY Price Forecast March 2, 2018, Technical Analysis

The British pound has gone back and forth against the Japanese yen in very choppy trading on Thursday, as the recent breakdown has put a lot of volatility into the market. It currently looks as if the 146.50 level underneath is supportive, but if we break down below there I think that the market unwinds and reaches towards the 145 handle. As far as buying is concerned, I would be long of this market above the 148 handle. In the meantime, it looks as if we are going to bounce around in this general vicinity, but it must be said that the market suddenly looks very vulnerable to selling pressure.

The market looks continue to be very noisy in general, so I would be careful about putting too much money into the market right away. I think that you need to see the market move in your favor, and perhaps even confirm your trade position as being correct before you start adding to the position. If we can break above the 148 handle, the market is very likely to go to 149 and then 150. I do believe that if we get the breakdown, the 145-level underneath is massive support, and I think it will be very difficult to break down below that level. If we do, that could send this market much, much lower.

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