GBP/JPY Price Forecast March 19, 2018, Technical Analysis

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Updated: Mar 17, 2018, 07:04 UTC

The British pound has gone back and forth against the Japanese yen during the trading session on Friday, which of course shows indecision. However, I think that the weekly chart forming something that looks like a shooting star suggests that we could see sellers soon.

The British pound has gone back and forth during the trading session on Friday, as we continue to dance around the 147.50 level. This market should continue to be very noisy, as we have a lot of concerns in the financial markets around the world. Remember, this is a bit of a “risk on/risk off” currency pair, so ultimately this is a market that tends to rally when stock markets or commodity markets do well, and then again will fall when they tend to struggle. I believe that the market will continue to be very noisy, but I think if we can break down below the 147 handle, that would be breaking below the shooting star the weekly chart, and that should be a very negative sign. I’m not interested in buying this pair until we managed to break above the 150 handle, because I think there is a strong possibility that some type of headline crosses the wires that scares traders right now.

GBP/JPY Video 19.03.18

There are fears of a trade war out there, and that will more than likely have money heading towards the Japanese yen as it is a “safety currency.” If we did manage to break above the 150 handle though, that would obviously be a very strong sign, and I think at that point we probably go to the 155 handle. Ultimately, if we break down below the 147 handle, then I think we go to the 145-level next. Below there, we could drop as far as 140.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.