GBP/JPY Forecast – British Pound Bounces Slightly Against Yen

GBP/JPY Forecast Video for 20.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Friday, as it looks like we are trying to do everything we can to bounce a bit. The 50-Day EMA of course is an indicator that a lot of people pay close attention to, and therefore could cause a bit of noise. If we can break above there, then I think it’s likely that we could go higher, perhaps reaching towards the 200-Day EMA. The 200-Day EMA is an indicator that a lot of people look at as a indicator for the longer-term trend. If we break above there, then the market could very well go looking to the 162.50 level on its way to the ¥165 level. When you look at the chart, it does make quite a bit of sense that we could eventually see that happen.

Looking at the last several weeks, we have been forming a bottoming pattern of sorts, and therefore I think we have to look at this through the prism of possibly being a basing pattern that is trying to kick off a much bigger move. Ultimately, the Japanese yen continues to see a lot of negativity due to the fact that the Bank of Japan is doing everything it can to keep yields down, which of course is the same thing as printing more currency. With that, I think you’ve got a situation where you are looking for dips to start buying on signs of exhaustion. On the other hand, if we break down below the ¥160 level, then we could go down to the ¥157.50 level.

For a look at all of today’s economic events, check out our economic calendar.