GBP/JPY Forecast – British Pound Continue Same Dance Against Again

GBP/JPY Forecast Video for 26.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen a bit during the trading session on Wednesday, reaching the bottom of the overall consolidation area that we had been in for a while. With that being the case, the market is likely to continue to see a lot of volatility and noise, as the pair is highly sensitive to risk appetite. We are hanging around the 50-Day EMA, and I think at this point we have to look at the ¥183.50 level as a potential target as it is the top of the range that we had been in.

Keep in mind that the 50-Day EMA typically attracts a lot of attention, and the fact that it is flat suggests that the market may not have anywhere to be for a while. That being said, I think this is a situation where you are just simply trading back and forth on short-term charts, as the Japanese yen is without a doubt one of the weakest currencies out there, but there are also concerns about the Bank of Japan intervening. As long as that’s the case, we are probably stuck in this “holding pattern” that you see on the chart.

The ¥180 level underneath is a massive support level, and as long as we stay above there, I am bullish on this market but I recognize that we don’t go straight up in the air. The ¥185 level above is a major resistance barrier, and if we can break above there, then the market could go looking to the recent highs again. Keep in mind that you get paid to hold onto this pair, via the positive swap.

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