GBP/JPY Forecast – British Pound Pulls Back Against the Japanese Yen

GBP/JPY Forecast Video for 03.08.23

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit against the Japanese yen as there has been a decidedly “risk off” type of attitude around the world, and therefore I think you got a situation where you probably have to look at this through the prism of whether or not we can stay above the ¥180 level. The ¥180 level is an area where I think you see a lot of noisy behavior, and therefore you have to look at that prism of significant support as it has been multiple times. Further exacerbating this idea is the fact that the 50-Day EMA is sitting right around the same area.

Keep in mind the jobs number comes out on Friday, and that of course has a lot to do with where we go next from a risk appetite standpoint. The British pound has been getting beaten up by the US dollar, and you are seeing a little bit of a “knock on effect” over here, and therefore the action explains itself. Having said that, if we turn around and show strength in this market again, I don’t have any concerns whatsoever about going long, because I do think that eventually we go to the ¥185 level. The ¥185 level is an area that once we break above it, I think you will see a lot of momentum jumping into this market.

On the other hand, if we break down below the 50-Day EMA, then it’s possible that we could go down to the ¥177 level, followed by the ¥175 level, an area that I think will eventually be massive support as well. Regardless, the Bank of Japan has shown itself to be wanting when it comes to interest rate control, and I do think that we continue to see the Japanese yen punished as a result. With this being the case, buying on dips seems the best option and I do think that it is probably only a matter of time before we truly take off to the upside. I think at this point, we continue to see this through the prism of finding value.

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