GBP/JPY Forecast – British Pound Continues to Recover Against the Japanese Currency

GBP/JPY Forecast Video for 11.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit against the Japanese and during the trading session on Tuesday, as we have broken above the 50-Day EMA. The interest rate differential continues to be a major driver of where this market goes, and it now looks as if we are threatening the recent highs to break out toward the ¥185 level. I have no interest in shorting this market, and I think that anytime we get a little bit of a pullback, the 180 and level underneath will be a bit of a floor. Ultimately, this is a market that continues to pay close attention to the interest rate differential, and of course the fact that the Bank of Japan has absolutely no interest in trying to tighten monetary policy.

While I don’t necessarily like the British pound, the reality is that it’s going to be stronger than the Japanese yen over the longer-term, therefore I think we continue to see plenty of buyers. I have no interest in shorting this market, and it’s not until we break down below the lows of last week that I would be concerned about the overall uptrend. If we can break above the ¥185 level, then it’s likely that the market could go much higher. Buying on the dip continues to be the best way going forward, therefore I think we have a situation where the market continues to see plenty of interest in buying pressure, but it doesn’t necessarily mean that we are going to go straight up in the air. I think short-term back-and-forth continues to be the major theme here.

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