GBP/JPY Forecast – British Pound Continues to Threaten Japanese Yen

GBP/JPY Forecast Video for 13.03.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit against the Japanese yen during the trading session on Friday, but it is facing quite a bit of headwinds just above. By doing the upward move during the day, it looks as if we are going to continue to see a lot of choppy and noisy behavior, which of course would be expected in this pair under the best of circumstances anyway. With that being said, it’s very likely that we will continue to look at the ¥165 level above as a major barrier to overcome, and therefore whether or not we can break above there remains to be seen. If we were to do so, that would obviously be a very bullish sign, but in this environment, you also have to keep in mind that there are a lot of noisy factors out there that could come into the picture and cause a bit of a headache for most traders.

Underneath, we have the 50-Day EMA and the 200-Day EMA sitting just below, offering a significant amount of support. Furthermore, it’s probably worth noting that the area is the previous resistance barrier that we had seen, so a certain amount of “market memory” could come into play there. With that, it’s likely that it will play a bit of a short-term floor in the market, but I also recognize that we probably have a situation where you will probably continue to see more noise than anything else. If we were to break down below that area, then obviously it would be very negative, but at this point I don’t see that happening very easily.

On the other hand, if we can break above the ¥165 level, then I think the idea of a move towards the ¥167.50 level will be a target, followed possibly by the ¥170 level, but that obviously would take a lot of effort to get to, and I don’t necessarily think it’s going to be that easy. With the jobs number coming out and causing some volatility there was a little bit of distortion in the market during the day, but at the end of the session, it’s important to remember that we are still very much in an uptrend.

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