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GBP/JPY Price forecast for the week of March 5, 2018, Technical Analysis

The British pound initially tried to rally during the week against the Japanese yen but found the 150 level to be far too resistive to continue going higher. We have since broken down below an uptrend line, a very negative sign indeed as we approach the 145 handle.

The British pound initially tried to rally during the trading this past week but found the 150 level to be far too resistant to continue going higher. We had formed a shooting star during the previous week, which suggested that selling was coming. Now that we have broken down below the uptrend line, it looks as if the market is ready to unwind from here. I believe that the market participants will probably look at rallies as selling opportunities, as there are a lot of concerns around the world right now due to the tariffs coming out of the United States. This has money running towards the Japanese yen in general, and it should be pointed out that the USD/JPY pair is testing major support. If we break down below the 105 handle in a pair, that will almost undoubtedly send this market much lower as well.

The alternate scenario would be if we can break above the 150 handle, something that I don’t things going to happen. If we did break above the 150 handle, then we would go looking towards 155. I don’t think it’s going to happen though, at least not this week. I think that any rally at this point is going to struggle with the previous uptrend line, perhaps offering a selling opportunity for short-term traders. At this point, it seems as if the sellers are starting to flex their muscles and take control of this market. The next major support level underneath 145 will be 143.

GBP/JPY Video 05.03.18

This article was originally posted on FX Empire

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