GBP/JPY Forecast – British Pound Sells Off Against the Yen

GBP/JPY Forecast Video for 08.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound has sold off pretty significantly during the trading session on Thursday, as we continue to see a lot of noisy behavior. After all, the market is not overly sure what to do with interest rates, and of course the Japanese continue to keep loose monetary policy. Keep in mind this pair is highly sensitive to risk appetite, going up as traders are willing to put money to work, and going down when they are concerned about the overall growth and markets in general.

The 50-Day EMA is racing toward price action right now, so I do think that that comes into the picture and people will be more than willing to get involved in this general vicinity. All things being equal, I do think that there will be plenty of buyers willing to come back, and we are nowhere near the top of the overall range of the market and of course the overall trend. After all, this is a market that still sees a major interest-rate differential, and probably will for the foreseeable future. As long as that’s the case, I do favor the upside but I recognize that we will get the occasional significant pullback. With that being the case, I think it’s a situation where we will continue to see a “buy on the dips” scenario.

Keep in mind that the ¥185 level above has been more or less a fulcrum for price previously, so I think that all things being equal, we will probably continue to see that as a potential midpoint of price. The 50-Day EMA underneath, the market is likely to continue to see that as a potential barrier. If we were to break down below there, then the ¥180 level would be targeted next. I’m not necessarily calling for that, just that it’s something that you need to keep in the back of your mind as you look at the charts. With that in mind, expect a lot of volatility but I do think that it is probably only a matter of time before we have to make a bigger move, and the longer-term trends suggest that it’s higher.

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