GBP/JPY Forecast – British Pound Plunges Against the Yen

GBP/JPY Forecast Video for 21.03.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially rallied against the Japanese yen during the trading session on Monday to reach the 50-Day EMA. However, we have pulled back from there to reach down toward the ¥159.10 level. Since then, we have bounced a bit, and this shows just how much volatility and noise there will be in the market right now.

Keep in mind that this pair is highly sensitive to risk appetite, and risk appetite is obviously all over the place right now as we just recently at the bailout over the weekend of a major Swiss bank. Furthermore, there are a lot of other people out there that are waiting to see what shoe drops next. Quite frankly, I think you need to look at this through the prism of risk appetite more than anything else, and therefore you need to understand that there will probably be a lot of headaches when it comes to dealing with this pair.

If we pull back from here then we could go down to the ¥157.50 level, which is an area that had previously been supported quite vehemently. If we were to break down below there, then the market could go down to the ¥155 level. On the other hand, if we were to break above the moving averages, then we test the ¥162.50 level. If we can break above there, then it goes looking to the ¥165 level above which had been significant resistance.

Ultimately, I think you’ve got a scenario where things will be very difficult, and therefore we are looking for signs of certainty, but right now I think we are more or less looking at this through the prism of a range bound market between the ¥160 level in the ¥165 level, at least as things stand right now. Keep in mind that markets are very fluid right now, and there are a lot of things to worry about so this could change quite rapidly. However, it appears that if you trade this market through the prism of a range bound system, you might be able to be quite successful, but keep your position size reasonable as volatility seems to be picking up.

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