GBP/JPY Price Forecast March 22, 2018, Technical Analysis

As you can tell from the intro paragraph, I believe that the 150 level is crucial when it comes to trading this market. It does look as if we are trying to build a bullish pressure and go higher, and an argument could be made for a bit of an ascending triangle being built just below the previous uptrend line on the daily chart. If that gets triggered, it suggests that we could go to the 150.75 level, but I think the 150 level needs to be cleared by the bullish traders for you to feel comfortable going long. I think there is far too much risk out there, and of course this pair does tend to be very sensitive to risk appetite. If we have trouble in the stock markets again, that could sell this market hard.

If we break down, I anticipate seeing significant support at the 148.50 level, and then again at the 147 handle. This is a market that does tend to be very noisy, so any type of action like that shouldn’t be much of a surprise. I would be small initially with my trading position, but if we can get some type of upward momentum, I would become much more aggressive on dips and try to build a longer-term position. As far as selling is concerned, a clearance of the 147-level underneath would break the back of the buyers and send this market much lower over the longer term. Currently though, it seems like people are willing to pick up risk, which means eventually this pair should rally.