GBP/JPY Forecast – British Pound Falls Against the Japanese Yen

GBP/JPY Forecast Video for 29.06.23

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen significantly during the trading session on Wednesday, reaching down toward the ¥182.50 level. This wipes out the candlestick from the previous session, we have so much bullish pressure on the way up here that it makes quite a bit of sense that we could see a turnaround. All things being equal, this is a market that has a lot of noise in the general vicinity, and therefore I think eventually we do see buyers come back in to push this market to the upside. The ¥180 level is the bottom of that range, and of course it is a large, round, psychologically significant figure that a lot of people would pay close attention to.

Keep in mind that the interest rate differential between these 2 currencies is extraordinarily wide, and of course, get to look at this through the prism of interest rate differential. I do think it’s probably only a matter of time before we see this market try to reach the ¥185 level, but that doesn’t necessarily mean that we get there overnight. Keep in mind that we are a bit overly extended at this point, and therefore it makes quite a bit of sense that we would have to take a bit of a breather.

All things being equal, this is a situation where I think you continue to see volatility more than anything else, and therefore you will need to be cautious with position sizing and of course the overall aggressiveness of the market. All things being equal, this is a situation where I think you have a deal where buying on the dip will continue to be the case going forward.

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