GBP/JPY Forecast -British Pound Gives Back Initial Gains Against the Japanese Yen

GBP/JPY Forecast Video for 23.06.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially shot higher during the trading session on Thursday, as we have seen a lot of upward pressure over the last several weeks. Ultimately, the market did give back some of the gains, showing signs of hesitation after the Bank of England raised interest rates by 50 basis points instead of the expected 25. That being said, there are some questions as to whether or not they just fired all of their shots in one go, meaning that there may not be as much to get excited about. However, at the same time we have the Bank of Japan with its loose monetary policy, and it suggests that we could see this pair eventually go higher, due to the fact that the Japanese have reiterated their desire to continue the quantitative easing.

Underneath, we have the ¥180 level, which of course is a large, round, psychologically significant figure, and an area where you would expect to see a lot of psychological importance placed on that number. If you break down below there, then it’s likely that we could go lower, perhaps reaching down to the ¥177.50 level. The market will continue to see a lot of upward momentum, but in reality, we still see plenty of traders out there that would be looking to get into this obviously bullish trade. Furthermore, even if we were to continue falling, the market would continue to see the ¥175 level offer support. Beyond that, we also have a 50-Day EMA racing toward that figure as well.

As things stand right now, I think short-term pullbacks continue to be buying opportunities, and that the market is trying to find its way to ¥185. In fact, it’s possible that we could go as high as ¥200 over the longer term, and therefore I think we’ve got a situation where longer-term traders are going to continue to hang on to this pair, but it’s obvious that the market will continue to see volatility as it typically does in this pair.

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