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

GBP/JPY Forecast Video for 06.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has shown itself to be somewhat soft during the trading session on Wednesday, but that’s to be expected as we are at the top of the major resistance barrier. Furthermore, late during the day on Tuesday, the market sold off quite drastically to form a massive shooting star for the day, so this suggests that perhaps there are still questions out there about what’s going on with the yen.

The British pound was a little overstretch not only against the yen, but against multiple other currencies as well, so it does make a certain amount of sense that we would see this happen. That being said, I’m not looking for some type of major selloff, I think it’s more likely than not going to be a situation where we just pulled back into previous consolidation, trying to sort out the overall attitude of the markets. With that being said, the ¥166 level continues to look like an area of trouble, so I do think that it is probably only a matter of time before we have to challenge that seriously. Underneath, we have the 50-Day EMA crossing above the 200-Day EMA, suggesting that the “golden cross” could attract buyers.

If we do break down below this moving averages, there are plenty of areas where I would expect to see buyers, reaching all the way down to the ¥159.50 level. In other words, this pullback will more likely than not attract buyers, and therefore it should be thought of as an opportunity to pick up a little bit of value in what has been an extraordinarily bullish market for some time.

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