GBP/JPY Price Forecast March 12, 2018, Technical Analysis

The British pound rallied significantly during trading on Friday, as the jobs number in America came out stronger than anticipated. The “risk on” move of course sent this market higher, reaching towards the 148.50 level. Just above there, there is a previous uptrend line that should be resistance, as it was significant support. · FX Empire

Christopher Lewis

Updated Fri, Mar 9, 2018, 10:11 PM

The British pound rallied against the Japanese yen during trading on Friday, as the “risk on” trade came on board, as the jobs number for February ended up being 313,000. This is a very bullish number, and it had a lot of buyers looking to buy risk assets. With the “risk on” attitude of traders, the Japanese yen quite often will get so, but I recognize that there is a lot of noise between here and the 150 handle, so it’s going to be very difficult to deal with this pair. I think that it’s possible that we break above the 150 handle, but it’s going to take a lot of work. Once we do though, that should be a “buy-and-hold” trade.

The 147.50 level underneath should be supportive, and it should extend back down to the 146.50 level. Below there, we probably go to the 145 level. If we get some type of selloff or “risk off” attitude in the marketplace due to such issues as potential trade wars, that could punish this market rather significantly. In general, this is a market that continues to be very choppy, and I believe that it’s only a matter of time before we get some type of clarity, and when we do we get a chance to be involved in the long-term trade. The question now is whether we will go higher or lower? Keep your position size low initially as the risk is very high.