GBP/JPY Forecast – British Pound Gives Up Early Gains Against the Japanese Yen
GBP/JPY Forecast Video for 03.10.23
British Pound vs Japanese Yen Technical Analysis
The British pound initially tried to rally during the day on Monday but has given back gains rather quickly as we continue to see a lot of noisy behavior around the British pound. The 50-Day EMA is sitting right around the top of the candlestick on Monday, and then of course we have the Friday candlestick that was also a shooting star, so it looks like we are trying to break down toward the ¥180 level. The ¥180 level underneath could offer a certain amount of support, as it previously had been. That being said, I do think there are plenty of buyers in that area and it’s probably only a matter of time before we see that area offer significant support.
On the other hand, if we were to turn around and break above the top of the last couple of candlesticks, it could kick off a move back to the ¥185 level, which is an area that previously has been important. With that being the case, I think it does make a good target but it’s obvious the market is ready to go back and forth in the short term more than anything else, so I think you have to be cautious about your position sizing and recognize that the market has a lot of decisions to make in this general vicinity.
While I don’t like the Japanese yen, the reality is that the British pound has been very soft as of late, and I think that probably continues. Short-term rallies that show signs of exhaustion are opportunities to get short again and therefore that’s how I will approach this market. On the other hand, if we break above the top of those 2 candlesticks from Friday and Monday, then I may switch my position. In general, I believe in buying yen related pairs, but this is my least favorite one.
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