GBP/JPY Forecast – British Pound Gives Up Early Gains Against the Yen

GBP/JPY Forecast Video for 09.03.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially tried to rally during the trading session on Wednesday but gave back gains rather quickly. We are sitting on top of the 200-Day EMA, and now it looks like we are going to continue to drop from here. I do think there is a significant amount of support underneath, right around the 50-Day EMA as well, right around the ¥162 level.

Any pullback at this point in time should be thought of as a potential buying opportunity, at least until we break down below the ¥160 level. Nonetheless, we have to pay close attention to how the yen is performing in general, and it looks as if there is some negativity coming out of the British pound in general, so this might end up being a significant underperformer against the yen, so keep that in mind.

If we break above the top of the candlestick for the day, that more than likely will send this pair look into the ¥164 level, which of course is an area where we have seen some selling pressure previously. Above there, we have the ¥165 level, which is worth paying attention to as well as it is a large, round, psychologically significant figure and an area where we’ve seen some noise previously. With that being the case, I think it’s probably only a matter of time before buyers run into a bit of a buzz saw, but if we were to break above the top of that shooting star, then the market could go looking to the ¥168 level. Ultimately, I think the only thing you can count on is going to be a lot of volatility.

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