GBP/JPY Forecast – British Pound All Over the Place Against the Yen
GBP/JPY Forecast Video for 21.11.23
British Pound vs Japanese Yen Technical Analysis
The British pound has initially tried to rally during the trading session on Monday, but then plunged down to the ¥185 level. We pierce that level, but then turned around to show signs of life again, suggesting that buyers will continue to try to find value. Keep in mind that the interest-rate differential continues to favor the British pound significantly beyond the Japanese and, so longer-term I think it’s likely that we continue to see upward momentum. I do think that it’s much easier to go higher rather than lower, but there is a bit of sentiment out there that perhaps the Bank of Japan is getting ready to change its overall monetary policy stance.
Looking at the chart, it looks like significant support just below the ¥185 level has held, and as long as it does, that would be a very bullish sign. Because of this, I think traders would look at this through the prism of the trend continuing, perhaps opening up the possibility of further upside momentum. If we can break above the ¥188 level, then it’s likely that we can look into the ¥190 level, which is still a target of mine over the longer term. That being said, as long as there is hope that the Bank of Japan changes its monetary policy stance, things could be a bit noisy.
Position sizing will be crucial, due to the fact that the volatility could cause you a lot of problems if you are not conscious, therefore I think you need to look at this through the prism of value opportunities and only add as the trade starts to work out in your favor.
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