GBP/JPY Forecast – British Pound Continues to Threaten Resistance

GBP/JPY Forecast Video for 15.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has initially pulled back just a bit during the trading session on Tuesday, but then turned around to show signs of life at the ¥160 level. Looking at the chart, you can see that we are clearly trying to break above a major resistance barrier, and therefore we need to keep in mind that the market will continue to be very noisy. If we can break above the 200-Day EMA, then it opens up the possibility of a much bigger move. At that point, I would anticipate that the market is looking to the ¥165 level, an area where we had sold off from quite drastically in the past.

On the other hand, if we turn around and break down below the ¥160 level, then it’s very possible that we could see a move down to the ¥157.50 level. That is an area where I think you see a lot of noisy behavior, as we have been trying to form a bit of a bottoming pattern. At this juncture, I think this is a situation where we have a lot of danger, because the market has been very volatile.

However, we should eventually see a bigger move in general that allows us to put a longer-term bottom or top. At this point, I think we’ve got a situation where we are more likely than not going to see an explosive move sooner or later, but right now you have to assume that we are still very much in the same consolidation area we have been in for a while. With this, I think you get a situation where you just have to let the market tell you what it’s going to do.

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