GBP/JPY Forecast – British Pound Sits Still Against Yen

GBP/JPY Forecast Video for 19.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has been back and forth during the trading session on Wednesday against the Japanese yen, although it’s probably worth noting that the range has been very tight. Because of this, I think we’ve got a situation where the market is going to continue to look at dips as buying opportunities, due to the fact that we have seen such resiliency over the last couple of days. Underneath, we have the ¥180 level, which is going to be an area that a lot of people are paying close attention to, as it is the bottom of the recent range. We had broken below it at one point a couple of weeks ago but then turned around to show signs of life.

On the upside, the ¥184 level is an area that could cause a bit of resistance, opening up a move to the ¥185 level, an area that defines the top of the overall consolidation area, and an area where I think you would see a lot of selling pressure. The market will continue to be very noisy, but given enough time I do think that eventually we break out to the upside and go higher. After all, the Bank of Japan stepped into the markets last night and started buying bonds, which is a direct form of quantitative easing. It looks as if the USD/JPY pair is trying to break above the ¥150 level, and if it does in fact do that, it will probably drag the other yen related pairs higher with it.

If we were to break down below the massive hammer from a couple of weeks ago that pierced the ¥180 level, then we can start to have a different conversation. However, that doesn’t look very likely to happen anytime soon, although the market is struggling to go higher in the short term. Given enough time, I think the trend eventually overtakes the sellers again, but as things stand right now, I am simply looking for value to take advantage of on dips for short-term trades. Quite frankly, I am short of the yen itself, but just not in this pair as it may underperform.

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