GBP/JPY Forecast – British Pound Plunges Against Japanese Yen

GBP/JPY Forecast Video for 13.01.23

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen hard during the trading session on Thursday, slicing back through the ¥160 level. At this point, a lot of people are speculating that the Bank of Japan may very well change its monetary policy. If they were to continue to see the need to allow rates to rise, that of course would be good for the Japanese yen, and that might be part of let the world a speculating on at the moment. That being said, the British pound also has its own issues, so it could be interesting in this general vicinity to see what happens next.

At this point in time, I believe that the ¥157.50 level might be a potential short-term support level, but I think it’s probably going to be even more supportive down at the ¥155 level. If we turn around and take off to the upside, recapturing ¥160 would be a very strong statement by the bullish traders out there. I anticipate more sideways choppy behavior than anything else at this point, so I’m not particularly pressed to trade this pair in the short term. Yes, it was a nice move if you caught it early enough, but at this point clarity is not necessarily something that we have in this pair, let alone any other market that I’m following it seems.

Keep in mind that there is also a risk appetite factor to this pair as well, meaning that if risk appetite starts to take off and everybody gets giddy again, that could send this pair higher.

For a look at all of today’s economic events, check out our economic calendar.