GBP/JPY Price Forecast March 23, 2018, Technical Analysis

The British pound has initially tried to rally against the Japanese yen during trading on Thursday, but as you can see is starting to struggle a bit as we have broken down mightily. It looks as if we could get a lot of noise in the market coming soon, and with president Donald Trump looking to levy tariffs on the Chinese, this could give us more of a “risk off” vibe in the financial markets. That favors the Japanese yen in general, so I would not be surprised at all to see this market breakdown rather significantly. It’s not until we break above the 150 level that I would feel comfortable buying this pair for any length of time, as it is a major barrier that we have tested twice and failed at both times.

At this point, I think that rallies will more than likely attract fresh selling, and that might be the way going for several sessions. If that’s the case, I suspect that we will target the 147.50 level underneath. A breakout above the 150 handle could send this market looking for 155, but of course this will be a very noisy and nervous market going forward, but if you’ve ever traded “The Dragon”, that would be nothing new. This is a very nervous and jittery market to say the least. A breakdown below the 147.50 level would be very negative, but at this point we would be getting ahead of ourselves worried about that.