Use Windows 2016 Storage Replica for SQL Server failover cluster instance
Frequently Asked Questions about Storage Replica specifically mentions using it for a SQL Server FCI.  Business continuity and database recovery - SQL Server also mentions it specifically.

I've also found other non-Microsoft articles (this one, in particular) mentioning it as well.

This, along with the fact that SQL Server doesn't know or care about the underlying storage as long as it presented as cluster storage, indicates that the answer is yes, it will work.