GBP/JPY Forecast – British Pound Pulls Back on Monday

GBP/JPY Forecast Video for 30.05.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially tried to rally during the trading session on Monday but gave back gains to show signs of hesitation. Ultimately, this is a market that got a little bit ahead of itself, and it looks as if we are more likely than not going to see the selling pressure. The ¥171.50 level is an area where I think there should be plenty of buying pressure, as we have seen noise in that general vicinity.

Underneath, the ¥170 level is, of course, another area where we would have to see a lot of support as well, especially with the 50-Day EMA racing toward that area. Ultimately, it’s only a matter of time before we see buyers jump back into the market, and therefore I think of looking toward the ¥175 level. ¥175 level is a major resistance barrier, and therefore I think it is probably only a matter of time before the market at least tries to get there. Whether or not we can break above there is a completely different situation to ponder, but at this point, I think it’s probably a scenario where eventually you will find buying opportunities and I think that’s how you approach this market.

Keep in mind that the interest rate differential between these 2 economies continues to diverge, so it does make a lot of sense that the British pound would continue to do quite well against the Japanese yen. Ultimately, this is a situation where I see plenty of buyers willing to jump in, so given enough time we should see more of a “buy on the dips” situation that a lot of people will be looking toward. The market has been very strong for quite some time, so it should not be a huge surprise that we see a resumption of this trend given enough time. Ultimately, I think you are looking for value that you can take advantage of.

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