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GBP/JPY Price Forecast March 29, 2018, Technical Analysis

Christopher Lewis
Updated
The British pound continues to bounce around against the Japanese yen during the trading session on Wednesday, as the 150 level creates a lot of resistance. If we can break above there on a daily close, then I think the market goes to the 155 level above, which is the next major resistance barrier.

The British pound tried to rally during the session on Wednesday, reaching towards the 150 handle. Ultimately, this is a market that I think will continue to see a lot of noise, as it is so sensitive to risk appetite in general. If stock markets and commodity markets continue to show signs of life, that should help the GBP/JPY pair, but of course the opposite is true as well. If the stock market starts panicking again, that almost always puts money towards the Japanese yen.

However, I think that the best way to play this market right now is to simply wait for some type of clarity on a daily chart to start placing money in this market. I believe that if we do break down, the 149 level should be supportive, and the breakdown below there would probably send even more money in this market to the downside, perhaps reaching down to the 148 level. The market will be volatile regardless, because that’s the nature of this pair anyway.

The way I plan to play this market is putting a small position on, and then adding if the move goes in my favor. That way, you can ride out the massive amount of volatility without too much in the way of trouble, and I believe that this point slow and steady would probably win the race. Jumping in with both feet is very difficult and quite frankly, dangerous.

GBP/JPY Video 29.03.18

This article was originally posted on FX Empire

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