GBP/JPY Price Forecast March 9, 2018, Technical Analysis

“The Dragon” is probably one of the most volatile pairs that most of you trade. This pair tends to move based upon risk appetite in general, and I believe that the current situation we find ourselves in makes trading this pair a bit difficult for a lot of people. This results in the consolidation that you see before you, as the last 4 days have been reasonably quiet. The 148.50 level above offers a significant amount of resistance, especially considering that there is a significant uptrend line that coincides with that level. We had broken down below that uptrend line, so it should now in theory be resistance.

If we were to break above that level, that would probably coincide with nice risk appetite around the world and in other markets such as stock markets, commodity markets, and bonds. I believe that if we do breakout to the upside, the 150 level gets targeted next. The alternate scenario is a breakdown below the 146 handle, which opens the door to the 145-level underneath, which has been massively supportive in the past. A breakdown below that level probably opens this market down to the 140-handle underneath. That would be a very negative turn of events in probably not only this market, but several other ones around the world. I think that if this market breaks down, it will be a result of geopolitical concerns and stock markets struggling. Keeping a smaller position is probably the best thing you can do.

Economic Calendar