GBP/JPY Forecast – British Pound Continues to Launch Into the Stratosphere

GBP/JPY Forecast Video for 19.06.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied rather significantly during the course of the Friday trading session as we continue to see a parabolic move. The Bank of Japan continues to see the desire to keep monetary policy loose, and therefore it does make a certain amount of sense that the Japanese yen continues to get pummeled. On the other side of the equation, the Bank of England has to deal with hot inflation, and therefore it does make quite a bit of sense that we would continue to see a lot of upward pressure on the British pound. Keep in mind that the market saw several massive candlesticks in a row, so we are without a doubt very impulsive at this point.

But that type of impulsivity, it’s almost impossible to start shorting this market, due to the fact that the Bank of Japan is not changing its attitude anytime soon. This is a market that is overstretched, but I think at this point in time it’s only a matter of time before buyers stepped back into this market and take advantage of “cheap British pounds.” The ¥175 level underneath will be a major support level, but that’s also a drop of over 600 pips as I record this.

On the upside, I think the market eventually goes looking to the ¥185 level, and longer-term it’s possible that we even go as high as ¥200. However, I don’t think you can chase the market as things stand right now, due to the fact that we have ripped 600 pips this week alone. With this, I think you’ve got to be very patient and wait for an opportunity to get long of the market again at a lower level. Selling is all but impossible at this point, due to the fact that it is such a bullish market. With this being the case, the market is likely to continue seeing plenty of people try to chase this market, but the smarter trader will simply wait for some type of value to get involved. Chasing all the way up at this level is a great way to lose money.

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