GBP/JPY Forecast – British Pound Sees Buyers After Initial Dip
GBP/JPY Forecast Video for 07.06.23
British Pound vs Japanese Yen Technical Analysis
The British pound has initially pulled back a bit during the trading session against the Japanese yen on Tuesday, as we continue to see a lot of noisy behavior. Because of this, I think you will have to be a bit cautious with your position sizing, but at the end of the day it’s very likely that we have a lot of noisy behavior more than anything else so that’s the most important thing to pay attention to.
The ¥175 area above is significant resistance, as it is a large, round, psychologically significant figure and an area that going back years ago was important. Because of this, I think that is the initial target, but if we can break above there it’s likely that we will really open up the possibility of a bigger move. Ultimately, I believe that the ¥170 level underneath is going to be a significant support level that people will be paying close attention to, especially as the 50-Day EMA is sitting right there as well.
With this, it’s likely that we continue to see plenty of buyers underneath, taking advantage of “cheap British pounds” when it comes to the exchange rate against the Japanese yen. After all, remember that the Japanese Yen continues to have a lot of negativity around it due to the Bank of Japan and its yield curve control. I think at this point we are more likely than not going to see a lot of back-and-forth, but eventually we should see a bigger move.
I look at each pullback as an opportunity to buy this market, as it is most clearly a bullish market that we should continue to see play out over the longer term. Ultimately, I just don’t have any interest in trying to find the trend which is so strong at the moment. With that being the case, I look at this through the prism of a market that is going to continue to see a lot of noise, but upward pressure more than anything else going forward until something fundamentally changes in Tokyo.
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