GBP/JPY Forecast – British Pound Skyrockets Against Japanese Yen

GBP/JPY Forecast Video for 14.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied rather significantly against the Japanese yen, breaking well above the ¥160 level during the Monday trading session. At this point, the question then becomes whether or not we can hang on to this momentum, or if we need to pull back in order to find more buyers. It is obvious at this point that the momentum is in favor of the British pound, and it does look like we are trying to form some type of bottoming pattern. Nonetheless, it doesn’t mean that it’s going to be an easy shot higher. In fact, I anticipate that it is going to be very difficult.

That being said, when you look at all of the price action since December, it’s obvious that there is a real reluctance to continue falling. Because of this, I think we got a situation where we need to be patient but recognize that eventually we will probably get a breakout. Clearing the 200-Day EMA opens up the possibility of a move all the way to the ¥165 level. What actually causes that remains to be seen, but it certainly looks as if the technical analysis is telling us that’s a very real possibility.

It’s especially telling that the British pound is strong during the day, even against the US dollar, so that does suggest that the market is likely to continue going higher. That being said, pullback should be looked at as a potential buying opportunity, and therefore on short-term charts you might have supportive action that you can take advantage of, and therefore I think it remains more or less a “buy on the dip” type of situation.

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