GBP/JPY Forecast – British Pound Sinks After Bank of England Surprises

GBP/JPY Forecast Video for 22.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound has plunged against the Japanese yen during the trading session on Thursday, as the Bank of Japan has its interest rate decision coming in a few hours. Furthermore, the Bank of England has decided to hold still with its monetary policy decision, which has massive implications as it was against the overall consensus. Because of this, it’s not a huge surprise to see that the pound has gotten hammered against the Japanese yen as there will be a lot of people out there concerned about the potential shock coming out of Bank of Japan decisions and of course jawboning.

The size of the candlestick is rather large, and it does look like we are going to try to drop down to the ¥180 level. The ¥180 level is an area that has been important multiple times, and therefore it should not be a huge surprise to see that it could offer a little bit of support. If it does, then I think it offers a nice buying opportunity for traders to get involved. With this being the case, I think you’ve got a situation where you could be a buyer, but it is more likely than not going to be anytime soon, as you will probably have to wait until Monday.

All things being equal, I don’t have any interest in shorting this market because the interest rate differential will continue to be very huge. You get paid to hold this pair, and that is something that a lot of people will be paying attention to. As long as that is going to be the case, then I think you continue to find plenty of support for the longer term uptrend, but be aware of the fact that the next 24 hours could be very difficult for this pair, so you are probably better off just simply waiting for some type of clarity to get her money put into the marketplace. I think given enough time, we will have to make a longer-term decision, but right now I’m just going to simply let the market do what it does, and then get involved in a reactionary way.

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