GBP/JPY Price forecast for the week of March 19, 2018, Technical Analysis

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Updated: Mar 17, 2018, 07:06 UTC

The British pound initially tried to rally against the Japanese yen but is struggling to break above the previous uptrend line, a very negative sign indeed. Forming a shooting star on the weekly chart doesn’t help either.

The British pound initially tried to rally during the week, but as you can see we have found enough resistance at the previous uptrend line that had been so reliable until recently. Because of this, I suspect that this pair may be ready to roll over, and the Japanese yen does look as if it is strengthening in against many other currencies. It’s obvious to me that the 150 level above will be important, so if we were to turn around and break above there, it would not only be a victory over a large, round, psychologically important figure, it would also be the market breaking above what could be a significant shooting star. At that point, I would anticipate that the market could go looking towards the 155 handle above, the most recent high. However, if we break down below the bottom of the shooting star, I suspect that this market will initially go looking towards the 145 handle, and then eventually lower than that towards the 143 handle.

GBP/JPY Video 19.03.18

I anticipate that we are going to see a lot of noise, that’s typical in this pair. It’s also a highly sensitive market to risk appetite, so keep that in mind. If the stock markets roll over, and let’s be honest here – they very well could based upon recent action – that could be enough of a reason for this market to start selling off. In general, it certainly looks negative, but I would be slow to add to this position.

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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.