GBP/JPY Forecast – British Pound Continues to Probe Resistance

GBP/JPY Forecast Video for 14.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Thursday to show signs of strength again, but it looks like there is still a significant amount of resistance just above that could cause some issues, and therefore it’s worth noting that the market will continue to be difficult to overcome in that area. However, I think we also have a situation where the noise above is without a doubt a major contributor to a lot of the confusion, and quite frankly hesitation that we will continue to see in the market.

The ¥166 level has been important multiple times, therefore it’s not a huge surprise to think that it’s an epicenter of trading as we formed a hammer leading up to it, but then saw the level pull price right back to it to show it itself as a bit of a magnet. Ultimately, I think you’ve got a scenario where the market will continue to be a situation where we will see plenty of questions asked about this region, and I think a pullback at this point in time would make a certain amount of sense. That being said, I also believe that a pullback at this point could very well end up being a value proposition as we’ve seen so much strength in the British pound.

At this point, the market is trying to break out and I think it’s probably only a matter of time before does, simply based on British pound strength. What the Japanese yen does probably remains to be seen, but it should be noted that the Bank of Japan continues its yield curve control policy, but as time goes on, a lot of this is starting to go by the wayside, as yields have dropped. In other words, it appears that the market is probably starting to pay attention to other concerns. With this, I think we’ve got a situation where we will pull back, but there will be plenty of buyers underneath to take advantage of potential value in a market that clearly has a lot of momentum over the last couple of weeks to the upside.

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