GBP/JPY Forecast – British Pound Looks Stratospheric Against the Yen
GBP/JPY Forecast Video for 01.03.23
British Pound vs Japanese Yen Technical Analysis
The British pound has skyrocketed against the Japanese yet again during the trading session on Tuesday as we have seen massive amounts of downward pressure on the value of the Japanese yen across the board. With that being the case, I think this is a market that is now starting to reach a little bit of noise, so perhaps the question now is whether or not we should be switching from the British pound to other currencies against the yen?
As an example, the New Zealand dollar looks like it’s getting close to breaking out against the Japanese Yen, and while I do believe that the British pound can continue to climb from here, it’s got a lot more noise in the short term to deal with and it has had in the last 48 hours. I certainly wouldn’t short this pair, but I recognize that it has outstretched itself a little bit during the day. With that in mind, I would be cautious, but I would look at pullbacks as a potential buying opportunity.
Quite frankly, what I would like to see is this market continue to rip higher, because there’s more value to be found in other yen related crosses. For example, the New Zealand dollar, the Australian dollar, and the Canadian dollar all look like they are ready to rip higher against the Japanese yen as well. Simply put, I believe that this chart might be a proxy for what the yen is doing at the moment, because if an overbought condition like this can continue to find buyers, clearly other pairs will have to pay homage to this, and play catch up.
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