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

GBP/JPY Forecast Video for 26.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound had initially tried to rally a bit during the trading session on Tuesday but gave back gains as we continue to see a lot of noise near the ¥168 level. The market is very sensitive to risk appetite, and it seems as if we are a “risk off market” at the moment. All things being equal, I think this is a situation where there will be buyers underneath that pickup value, but there are a couple of different places you need to pay close attention to.

The ¥165 level underneath is an area where I would be very interested in buying some type of bounce, but we need to see the market try to find buyers in that area and perhaps a short-term bounce. The market continues to be very noisy, and of course there are a lot of different things out there influencing price action in this market. With that in mind, I think you need to look at it through the prism of whether or not the market is taking a lot of risk, and if it does it’s very likely that this pair will continue to go higher.

It’s also worth noting that the Friday candlestick bounced rather hard from that ¥165 level, so I think that just gives more credence to the idea that it’s an important level that we need to pay attention to. On the upside, if we were to break above the little “micro double high” that we just formed at the ¥168 level, it opens up the possibility of a move to the ¥169.50 level where we have seen a lot of selling pressure previously. Anything above that threatens a breakout above the ¥170 level, which of course is a large, round, psychologically significant figure that would attract a lot of attention and open up more momentum buying. Ultimately, this is a situation where we continue to see a lot of back-and-forth, with plenty of buyers underneath the start trying to pick up any signs of value as they occur.

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