GBP/JPY Price Forecast March 20, 2018, Technical Analysis

The British pound has rallied significantly during trading on Monday, reaching towards the previous uptrend line that had been so important. It has offered resistance again, and as I watch this I find it very interesting considering that the stock markets around the world have been selling off. Perhaps the boost from the announcement out of the United Kingdom and the European Union have seen their full effectiveness priced into the market. If that’s the case, this “risk off” environment that we find ourselves and will continue to put downward pressure on this pair. I find it very interesting, it shows just where the mindset of traders are. However, if we were to break above the 150 handle, this market could explode to the upside as it would be a massive area giving way to the buyers.

GBP/JPY  Video 20.03.18

However, as I record this video, this market does look as if it is failing, and it could open the door to a move down to the 148 handle. This market does tend to move rather quickly, and it should be noted that the only “risk on” move that I have seen all day has been the British pound. I think that eventually that will give way to the usual correlations of whether risk appetite is around. If that’s the case, we have just seen the uptrend line act as resistant yet again.