GBP/JPY Forecast – British Pound Consolidates Against the Japanese Yen

GBP/JPY Forecast Video for 17.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Friday, as it looks like we are a little bit stretched against the Japanese yen. That being said, this is a market that does tend to be very noisy, so it should not be overly surprising if we see some type of hesitation in this area. After all, we are at the top of a major range, and it does make a certain amount of sense that we would have some work to do in order to settle all of what is going on at the moment.

Furthermore, keep in mind that the pair is very sensitive to risk appetite in general, so that of course has a major part to play. Ultimately, I think this is a situation where you have more than enough reason to believe that a pullback is probably coming, but quite frankly that doesn’t necessarily mean that you should be a seller of this pair. I think if you wait long enough, you could get an opportunity to buy a dip in what has been a very strong market. The 50-Day EMA sits near the ¥163 level, an area that of course will attract a lot of attention. All of that being said, the 50-Day EMA is just now starting to turn higher, so it will remain to be seen whether or not he can truly offer technical support. Underneath there, then we have the 200-Day EMA which sits right around the ¥162 level.

Looking at the chart, you can see that we are in an area that features a major negative candlestick from last winter that has yet to be taken out. This is why I think this area is going to be very difficult to get beyond. I’m not saying that it cannot happen, just that it may not happen very quickly. It may take a significant amount of effort to make that happen, and therefore a significant amount of caution would probably be needed at the moment, with an eye on value after dips.

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