GBP/JPY Forecast – British Pound Continues to Rally on a Breakout

GBP/JPY Forecast Video for 15.11.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the course of the trading session on Tuesday as we are now above the ¥187 level. At this point, the market looks as if it is ready to go much higher, and short-term pullbacks should continue to offer a buying opportunity. I do believe that this pair goes to the ¥190 level before it is all said and done, especially as the Bank of Japan is nowhere near tightening its monetary policy.

The ¥185 level underneath is a major support level, and I do think that it is probably only a matter of time before we see buyers jump back into the market if we get anywhere near there. I don’t necessarily think we do, but it is something to keep in the back of the mind. With the size of the candlestick during the trading session on Tuesday, I think it’s very likely that buyers will remain aggressive, and therefore I think we’ve got a situation where it’s only a matter of time before we take off to the upside.

Part of this is British pound strength in general as the CPI numbers in the United States cooled off, making the GBP/USD pair take off to the upside, thereby putting upward pressure on the British pound everywhere. Furthermore, we also have the Bank of Japan out there keeping its monetary policy loose for what is probably going to be the rest of our natural lives, therefore the Japanese yen gets punished. I don’t see how this changes, but if we did somehow break down below the ¥185 level, I would have to stand up and take notice.

More likely than not, we will see short-term pullbacks on lower time frames that we can take advantage of, and therefore we probably have to enter from lower timeframe charts. Either way, this is a market that looks like it’s ready to go racing toward the ¥190 level over the longer-term, and I think that continues to be the case for the foreseeable future. Look at tips as value that you can take advantage of to pick up “cheap British pounds.”

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