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

GBP/JPY Forecast Video for 21.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back just a bit during the trading session on Thursday, as we may have gotten a little overstretched. That being said, the market is likely to continue to see a lot of volatility, but I think there are plenty of buyers underneath that would be interested in getting long. The ¥166 level would be an area that I think you would see a lot of previous resistance offer support now, and therefore I think you’ve got a situation where traders will be looking to pick up value. I don’t have any interest in shorting this pair, at least not yet as the Japanese yen will continue to be stymied by the Bank of Japan and its yield curve control policy.

That being said, it does make a certain amount of sense that we have seen a bit of resistance as we are overbought, but ultimately, I think the market will continue to be very noisy, which is typical for this pair as we have a lot of volatility attached to it. The market will continue to look at this through the prism of whether or not we are taking off to the upside as far as risk appetite is concerned, the market will continue to look at this through that prism, and therefore I think you need to understand that there is going to be a lot of noisy behavior regardless.

With this being said, I think you get a situation where you are going to continue to “buy the dip”, and therefore I do think that eventually that this pair breaks above the ¥169 level. Once it does, this pair will probably take off to the upside. Until then, sellers will continue to have to prove themselves, but right now they just don’t seem to have any real strength. That being said, the 50-Day EMA being broken to the downside, something that’s not going to happen anytime soon, could be a very negative turn of events and change the entire complexity of the market.

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