GBP/JPY Price Forecast March 27, 2018, Technical Analysis

The British pound rallied during the trading session on Monday, reaching towards the previous uptrend line, and then the 150 level as well. This is an area that is going to feature a lot of resistance, so I think that it is only a matter of time before the sellers come back. However, if we were to break above the 150 handle, that would be a very bullish sign, and wipe out the previous uptrend line. I think that the reaction would be due to good news coming out of the United States or China regarding negotiations, as there are a lot of fears when it comes to a potential trade war.

This market looks to be very sensitive to the China situation, so I think that it is going to be very difficult to trade, but once we get some type of clarity, the market will make a significant move that you can follow. There has been a lot of noise in this market lately, so if you are inclined to trade it, I would be very cautious but add aggressively once we get an impulsive move as this pair tends to move quickly.

The 145-level underneath would be the target if we roll over, as it has shown support recently. If we break out to the upside, I believe the market then goes to the 155 handle after that. This is the classic “risk on/risk off” currency pair for most traders, keep that in mind.