GBP/JPY Forecast – British Pound Breaks Above Major Technical Resistance

GBP/JPY Forecast Video for 12.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the trading session on Wednesday, breaking well above the 50-Day EMA, and the recent resistance that we had seen just above it. Because of this, it looks like the British pound is ready to continue to go looking toward the ¥185 level, which was a major resistance barrier. If we can break above that, then we can have a real shot at taking off to the upside.

Keep in mind that the Bank of Japan has extraordinarily loose monetary policy and that doesn’t look to be changing anytime soon. Because of this, I do favor shorting the Japanese yen, and it looks like the British pound is starting to pick up a little bit of momentum. That being said, I think this is a scenario where the British pound it might under produce compared to other currencies against the union, but at the end of the day, it should continue to go higher due to the overall momentum and the interest rate differential.

The 50-Day EMA should now be a significant support level, and then again at the ¥180 level underneath there. Ultimately, I do think that this is a market that not only breaks to the 185 level, but continues to see the overall uptrend reassert itself, just as we have in multiple other yen related pairs and although it could be volatile, it certainly looks like this is a scenario where the buyers are in control. I have no interest in shorting this market, and therefore I’m just looking for value to go along with the overall attitude of the market. While I am in other yen related pairs right now, this one I have steered clear of just due to underperformance.

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