GBP/JPY Price Forecast March 26, 2018, Technical Analysis

This pair has been interesting over the last several sessions, because the British pound has been resilient against the Japanese yen, even though we have been in a massive “risk off” type of situation. I think that the 150 level will continue to be very important, and if we can break above there I feel that the market is free to go much higher, perhaps the 1.55 level. Alternately, if the 150 level offers enough resistance, I think the market will eventually roll over. This is a very wrist sensitive currency pair, but it has been a bit more resilient than usual as the Bank of England has hinted that there will be an interest rate hike in May.

This tells me that if we get more of a “risk on” marketplace, and perhaps the trade war talks dissipate a bit, this pair should explode to the upside as there’s plenty of reason to think that the British pound will continue to gain. This will be a very interesting battleground, and perhaps the first sign of where else to put your money. If we break above 150, that will be a huge sign to start buying risk asset’s around the world. Alternately, I think if we break down below the 147.50 level, the market probably breaks down rather significantly, reaching towards the 145 handle. That would also more than likely trigger a bigger moved to the downside, perhaps down to 140 over the next several weeks.