GBP/JPY Forecast – British Pound Continues to Grind Higher Against Japanese Yen

GBP/JPY Forecast Video for 24.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit against the Japanese yen during the trading session on Monday, as we continue to see a lot of noisy behavior overall. Ultimately, this is a market that I think does go higher, perhaps reaching toward the ¥185 level. The ¥185 level has previously been significant resistance, so it does make sense that it could be a bit of a target at this point. With this, I think we’ve got a situation where we are consolidating overall, but still are very much in an uptrend. Eventually, the market will try to do everything it can to break above the ¥185 level as the Bank of Japan fights interest rates rising in that country. As long as that’s the case, it’s very likely that we have a scenario where you continue to “buy on the dip” any time you get that possibility.

Underneath, the ¥180 level is a large, round, psychologically significant figure that people pay close attention to due to not only the number itself but also the fact that it has recently offered support. That support is something that traders will not forget and therefore will look to for some type of guidance. The market breaking down below there could bring in the idea of the 200-Day EMA being targeted, but right now that seems to not be very likely. This is especially true as momentum seems to be a major driver of markets on the occasional panic announcement anyway.

Keep in mind this market is highly sensitive to risk appetite at times, so that will also come into play, but right now I think we’ve got a scenario where we are more likely than not going to see a lot of volatility, which could cause its own issues from time to time. Position sizing will be crucial, but as long as the Bank of Japan does everything it can to keep rates down, that will make the Japanese yen less attractive, and therefore the British pound by default will continue to perform against it. That being said, this is one of the more lackluster yen related pairs that I am following right now.

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