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

GBP/JPY Forecast Video for 02.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has initially tried to rally during the trading session on Wednesday, but then pulled back to show signs of weakness. The ¥160 level being broken to the downside is negative, but there is a hammer from last week that we need to pay close attention to, because if we break down below there, then it’s likely that we could go even lower. On the other hand, if we turn around and break above the ¥160 level on a daily close, then it’s likely that we could go back toward the high, which was closer to the ¥162 level. The 50-Week EMA is hanging around there as well, so it does look like it’s going to be difficult.

Looking at this chart, we’ve been very noisy as of late, but if we turn around and show signs of strength, it continues the potential “W pattern” that we had been playing around with previously. Ultimately, this is a situation where I think it will move back and forth with risk appetite, as the pair rises, means that people are looking to take on more risk, but if we see it fall, quite often that will typically suggest that there are a lot of problems around the world, people are looking at safety.

When you look at the chart, you can see that the market could fall the way down to the ¥156 level if we really get going. On the other hand, if we turn around and break above the 50-Day EMA, then it’s possible that we could go looking to the ¥165 level.

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