GBP/JPY Forecast – British Pound Plunges Against Yen

GBP/JPY Forecast Video for 03.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen hard against the Japanese yen during trading on Thursday, slamming into the ¥158 level almost immediately after the Bank of England announcement that they were going to stay at 4%. That being said, the market is trying to fight back from that area as I write this, so it will be interesting to see if this actually plays out as a negative session.

Nonetheless, there is a lot of noise at the moment so it’s a little bit hard to judge, but we have been in a range for a while now, and I don’t know that we are going to break out of it. The ¥156 level underneath should continue to be an area of concern, extending down to the ¥155 level, based upon history. The ¥155 level is the gateway to a much lower pricing if we break down through it.

At this point in time, I think you are going to see continued volatility as everybody tries to figure out what to do about bond rates. Quite frankly, the Federal Reserve meeting during the Wednesday session did very little to calm things down, so therefore I think we continue to see more of the same nonsense that we’ve seen for a while, these erratic moves that are seemingly hell-bent on causing as much destruction as possible. That being said, I think we are basically in the middle of the overall consolidation range, so I’m fairly ambivalent about this pair right now. Pay attention to the British pound overall, that might give you clues as to what we will do over here.

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