GBP/JPY Price Forecast March 6, 2018, Technical Analysis

The British pound has rallied a bit against the Japanese yen during trading on Monday, showing signs of strength and vitality. The hourly chart is showing a bit of a “W pattern”, and that could be the beginning of a base that turns this market around and sends it looking for the 147.50 handle afterwards. I think that there is a lot of noise just waiting to happen there, so of course you going to have to be very cautious. If we were to break down below the 145 handle, I think that opens the door to much lower pricing, which is a real threat currently. We have broken below a downtrend line, but it’s also possible that things turn around and we break back above it. That uptrend line is to be found somewhere near 147.50, so that would also be another reason to think that we would recover completely.

Remember that this pair is highly sensitive to risk in general, so pay attention the stock markets around the world. If they start to rally, a lot of times that will put upward pressure on this market, sending them much higher. Otherwise, if the stock markets fall, that often has traders looking to buy the Japanese yen as a safety currency. That of course puts negative pressure on this market, especially considering how the uncertainty around the United Kingdom was still ways upon the minds of traders.

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