GBP/JPY Forecast – British Pound Recovers Against Japanese Yen

GBP/JPY Forecast Video for 18.07.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially pulled back just a bit during the trading session on Monday, only to turn around and show signs of life. All things being equal, this is a market that I think you will continue to see upward pressure, especially as the British pound has been a very strong performer, and the Japanese Yen of course suffers at the hands of the Bank of Japan and its loose monetary policy conditions. Underneath, we have the ¥180 level, and that’s an area that typically offers quite a bit of support. After all, it is a large, round, psychologically significant figure, and an area that has offered support recently.

If we were to break down below the ¥180 level, then the next thing that I would pay close attention to this is the 50-Day EMA underneath, which is closer to the ¥178 level. All things being equal, this is a market that I think continues to see a lot of buying pressure over the longer-term, but all things being equal, I think this is a market that is trying to get back to the ¥184 level, which was where we topped out at previously. If we were to break above there, then it opens up the possibility of a move to the ¥185 level. The ¥185 level is a large, round, psychologically significant figure, but we have not been able to reach that recently, so looking at this I think you’ve got a situation where we will eventually try to get there. Whether or not we can anytime soon remains to be seen, but it certainly looks as if it is very possible.

All things being equal, I anticipate seeing a lot of noisy behavior, but it still looks as if we are going higher over the longer term. We have had a nice little pullback recently, and it does suggest that we could see a bit of value hunting, and it certainly looks like Monday is starting out in that overall direction. The market will continue to be noisy, but I think the Japanese yen continues to be a bit of a punching bag against many currencies, the British pound included.

For a look at all of today’s economic events, check out our economic calendar.