GBP/JPY Price Forecast March 28, 2018, Technical Analysis

The British pound breaking down significantly during the trading session on Tuesday, showing signs of resistance again near the 150 handle. It is not until we close above 150 on a daily close that I’m comfortable buying, and even then, I think it’s going to be very difficult as there is plenty of noise out there that could move headlines and cause a lot of sudden moves. I think that if we break down below the 148 handle, the market then drops rather significantly. Otherwise, if we can get some type of bullish move and perhaps a “risk on” market overall, then I think the market will clear the 150 handle, and then reach towards the 155 level.

Overall, I think that the market continues to be one that you should play small positions, and because of that I think that you will only be able to add in a scenario where you are proven correct, regardless of what direction you choose to trade this market. I believe that we are historically low against the Japanese yen when it comes to the British pound, but also there are a lot of things moving around that could cause problems with global markets. I think that if you can play a small position, then you can think of it more as an investment as this pair does tend to move significantly over the course of months, as it is so volatile. However, the volatility should keep you from putting a lot of money in the market all at once.