GBP/JPY Forecast – British Pound Stabilizes Against the Japanese Yen

GBP/JPY Forecast Video for 28.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth against the Japanese yen during the trading session on Wednesday, as it looks like we are trying to stabilize overall. That being said, pay close attention to the ¥180 level underneath, as it is a large, round, psychologically significant figure and an area where we have seen a lot of action in the past. Because of this, I think there could be a certain amount of “market memory” coming into play, but I also recognize that we could have a scenario where if we break down below there, it could open up a trap door for further selling. In that scenario, the market is likely to drop down to the ¥175 level, especially with the 200-Day EMA in that area.

If we turn around a rally from here, the 50-Day EMA could be short-term resistance, but if we were to break above there, then the market is likely to go looking to the ¥185 level. We are still in a longer term uptrend, so it’s probably just a matter of time before we turn around and show signs of life. All things being equal, this is a situation where we would see a lot of volatility, but if we eventually stabilize in our uptrend against the Japanese yen overall, the British pound will eventually join. The British pound is oversold against the US dollar, so we might see a short-term bounce rather soon to make that happen as well.

I don’t have any interest in shorting this pair, even though I don’t necessarily think that it is one that you want to go running toward anyway. Longer-term investors continue to get paid every day, but the pullback has been a bit difficult over the last couple of weeks. That being said, when you look at the longer-term chart, you can see clearly that there is plenty of buying underneath, and unless we see the Bank of Japan change its tune, it’s almost impossible to short this market anytime soon. Ultimately, I’m looking for an opportunity to get long, but I haven’t seen it yet.

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