GBP/JPY Forecast – British Pound Continues to Build Pressure Against Japanese Yen
GBP/JPY Forecast Video for 27.01.23
British Pound vs Japanese Yen Technical Analysis
The British pound has initially pulled back a bit during the trading session to show signs of hesitation against the Japanese yen, but then turned around to show signs of real strength as we gained enough momentum to break back above the ¥161 level. The initial pullback dropped all the way down to the ¥160 level, so it should not be a huge surprise that traders are looking at these big figures for guidance again. At this point, we are now threatening moving averages, specifically the 50-Day EMA which sits just above the recent highs. Ultimately, it’s going to take some effort to get above that, but I do think that given enough time we should be able to do that.
Keep in mind that interest rates have a lot to do with where we are going next, as the Bank of Japan continues to fight rising yields in its 10 year note. Right now, they have a “ceiling” of 50 basis points that they are looking at, and if we were to dip below there, then it’s likely that we see a lot of relief for the Japanese yen, allowing this pair to drop. However, if you’ll start to rise again, that means they will have to print yen in order to fight that. I think at this point the only thing you can count on is a lot of choppy noise, but if we break above the ¥162.50 level, I do believe that we have a much bigger move ahead of us, for at least 250 pips.
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