GBP/JPY Forecast – British Pound Continues to Look to the Upside

GBP/JPY Forecast Video for 20.06.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Monday, as it looks like we are trying to figure out whether or not gravity is actually going to come back into the picture. The market has been straight up in the air for all of last week, so running out of momentum is not a huge surprise, especially considering that the market ended up gaining over 700 pips.

All that being said, I think the ¥180 level underneath could be supported, as it is a large, round, psychologically significant figure, and an area that more likely than not has some type of options barrier attached to it. If we do break down below there, then I think the market could drop all the way down to the ¥175 level, which is previous resistance. At this point, the market could then end up being bullish again, due to the fact that it would offer value.

All things being equal, this is a market that I think is going to remain a “buy on the dips” type of situation, but with the explosive move that we had over the last week, I do want to see some type of significant pullback before I start buying. The market has gotten so far ahead of itself that it would not surprise me at all to see a couple of negative days in a row. I’m simply waiting for some type of signal on the daily chart to tell me that the buyers are coming back into the market.

Alternatively, if we simply break out above the top of the candlestick from Monday, then we could go looking to reach the ¥182.50 level, but at this point I don’t feel like chasing this market, because quite frankly it is overdone, and when markets spike straight up in the air like this, you do get an opportunity to pick up value on dips. That being said, it is going to take a lot of patience to make money in a market that is a bit of a runaway situation like this one, so therefore I am in a “observe only mode.”

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