GBP/JPY Forecast – British Pound Continues to Find Buyers on Dips Against Yen

GBP/JPY Forecast Video for 24.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back just a bit during the trading session on Thursday, to show signs of life. Ultimately, this is a market that continues to see a lot of noisy behavior, but we had recently broken out and that is the one thing that I am paying the most attention to. We pulled back initially to break down below the ¥162.50 level as a return to find more liquidity, but the 200-Day EMA has almost certainly offered quite a bit of technical support. If we turn around and break above the highs of the last couple of days, I think we could really start to take off, perhaps opening up the possibility of a move to the ¥165 level.

Pullbacks at this point in time should continue to see a lot of people interested in buying, because the Japanese yen of course continues to suffer at the hands of a yield curve control program that a lot of people are paying attention to. With this being the case, market is likely to be more of a “buy on the dip” type of situation, as long as we can stay above both the 200-Day EMA and the 50-Day EMA.

The markets more likely than not will continue to focus on the fact that the Bank of Japan is stuck with its position, and therefore I think you continue to see the yen fail against not only the British pound, but also the other currencies that it’s trading against around the world. I have no interest in buying the yen, and therefore by default would be a buyer of this pair.

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