GBP/JPY Forecast – British Pound Continues to Consolidate Against the Yen

GBP/JPY Forecast Video for 23.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the course of the trading session on Friday, as we continue to see a lot of noise in general. Quite frankly, this is a market that doesn’t look like it’s ready to go anywhere, and I think a lot of people are simply looking at it through the prism of short-term back-and-forth trading. Longer-term, it certainly has more of an upward momentum to it, but it’s obvious that we are not quite ready to take off to the upside. The 50-Day EMA causes a little bit of technical resistance and therefore could cause some short-term issues. Having said that, we have broken through there a couple of times, so I don’t think that it is going to be like a brick wall.

Underneath, we have plenty of support near the ¥180 level, and I think that comes into the picture as well. As long as we can stay above there, the market really hasn’t changed much, despite the fact that we could see a little bit of noisy behavior. To the upside, the ¥185 level is an area where I think a lot of people will be paying close attention to, as it has offered a lot of resistance in the past.

The market continues to be very noisy, but I do think that it is probably only a matter of time before we do break out to the upside as the Bank of Japan is still very loose with its monetary policy, and has even got involved in the bond markets recently, driving down yields again.

In other words, it doesn’t really matter what the Bank of Japan says, you should be paying attention to what it does. Currently, it looks like it is going to continue to see a lot of noisy behavior. Because of this, you need to be cautious with your position size but recognize that the longer-term trend still favors the upside to say the least. If we were to break down below the ¥180 level, then it would be a very negative turn of events, but right now that doesn’t look very likely.

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