GBP/JPY Price Forecast March 21, 2018, Technical Analysis

The British pound struggled on Tuesday, initially tried to rally against the Japanese yen but found enough resistance above at the previous uptrend line to cause the market to roll over. Remember, this pair is highly sensitive to risk appetite overall, which seems to be waning as of late. If that’s the case, I suspect that the sellers will come back into this market and punish the British pound. The Japanese yen is the ultimate “safe haven currency”, and that is the potential leading factor in where this pair goes.

On a break below the 148.50 level, I suspect that fresh money will come into the market and start selling rapidly. As far as buying is concerned, it is going to be a bit difficult to do, at least until we break above the 150 handle, which would be a massive psychological victory for the buyers. At that point, it would become more of a “risk on” market, giving the opportunity for those who are bullish of global risk in general to profit. I anticipate that this market will continue to struggle a bit, but ultimately, I think that the true deciding factors will come from external forces, such as the stock market and commodities markets. If that’s the case, pay attention to the overall attitude of the global financial system, which will give you a bit of a “heads up” as to where traders are looking to get involved. I believe that the pair will continue to struggle at this lofty level.