GBP/JPY Forecast – British Pound Gives Up Initial Gains

GBP/JPY Forecast Video for 10.11.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially shot higher against the Japanese yen during trading on Thursday, but gave back gains rather quickly as we continue to see a lot of volatility and choppiness in the market. Ultimately, I think this is a situation where you have to look at this through the prism of whether or not we are going to see some type of massive “risk on move”, or if we are simply killing time. I suspect that the latter of the 2 is the most likely answer, and therefore I look at this as another sign that we are not quite ready to go higher yet. Having said that, I do think that it is probably only a matter of time.

Pullbacks will almost certainly get bought into, especially near the 50-Day EMA underneath, which is a significant technical indicator that a lot of people pay attention to. Because of this, I like the idea of buying pullbacks and finding value, because not only does it technically make sense, but it also makes sense from an interest rate differential situation as the Bank of Japan continues to keep interest rates extraordinarily low in that country.

If we break out to the upside, and clear the ¥187 level, it’s possible that this market will go look into the ¥190 level next, on its way to the ¥200 level over the longer term. I do think that it is very possible that we get to that level, simply due to the fact that the interest rate differential will continue to be a mile wide. I think at this point in time, buying on the dips is the only thing that makes sense.

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