GBP/JPY Forecast – British Pound Continues to Rally Against the Yen

GBP/JPY Forecast Video for 11.08.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the course of the trading session again on Thursday, as it looks like we are finally getting close to breaking out to the upside. If we can take out the ¥184 level, then the next target of course will be the ¥185 level. The question of course now is whether or not we can sustain the move. At this point, it does look like we will eventually, but I also recognize that short-term pullbacks are possible. Yet to look at this through the prism of finding value occasionally, and therefore dips are to be thought of as value that you can take advantage of.

Ultimately, it looks like the ¥180 level will continue to be a massive support level, and I do think that’s the bottom of the short-term trend. That’s especially true considering that the 50-Day EMA sits right there as well, and therefore it’s probably only a matter of time before we see buyers jump into this market in that environment.

Keep in mind that the Bank of Japan continues to do everything it can to keep interest rates low, and this of course works against the value of the Japanese yen. That being said, they may try to jump in and do something in the market, but that will be short-lived at best. I do think that it is probably only a matter of time before buyers would come back in and try to take advantage of this. Because of this, you need to look at short-term dips as an opportunity and therefore be very nimble. However, if we can break above the ¥185 level, then it’s likely that this pair is looking to the ¥200 level, which is my longer-term target based upon the central bank interest rate differential at the moment.

If we were to break down below the ¥180 level, then I think the next major area of support is near the ¥177 level, where we had bounced from after that flash crash a couple of weeks ago. Either way, I don’t have any interest in shorting this market anytime soon, and it would take a complete turnaround by the Bank of Japan to make me do that.

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