GBP/JPY Forecast – British Pound Probes Higher Against the Japanese Yen

GBP/JPY Forecast Video for 19.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has reached toward the ¥167 level, an area that has been difficult to break previously. That being said, it’s probably worth noting that the market has a lot of noise in this general vicinity, so don’t be surprised if there is a little bit of a short-term pullback. Regardless, this is a market that I think continues to move on risk appetite more than anything else, and the pullback at this point in time probably opens up the possibility of a short-term buying opportunity.

Underneath, the ¥165 level will probably create quite a bit of interest, and therefore I think you’ve got a situation where a pullback allows you to find a little bit of value, which is probably exactly what you are going to need in order to see this market continue to the upside. I would anticipate a lot of noise, but at the end of the day I think you’ve also got a situation where the Japanese yen will continue to suffer at the hands of the yield curve control policy coming out of Tokyo. As long as the Japanese are looking to do yield curve control, it’s difficult to imagine that the Japanese yen is going to be a strong currency. This is especially true considering just how strong the British pound has been as of late. Because of this, I think this remains a “buy on the dip” type of trading situation.

That being said, if we do take off to the upside it’s very likely that we could get looking to reach the ¥168.50 level. After that, you could have a move toward a ¥170 level, and then the ¥172 level where we had peaked back in October of last year. On the downside, the 200 day EMA is probably about as low as we go on a pullback, currently near the ¥162.50 level, but quite frankly, I think it would take something rather special to make that happen. I look at pullbacks as potential buying opportunities going forward and I don’t think that changes anytime soon.

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