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

GBP/JPY Forecast Video for 13.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has done very little during the trading session on Thursday, as it looks like we are starting to see a little bit of gravity come into the picture to put some pressure on the market. That being said, we are still very much in an uptrend and I don’t have any interest in buying the Japanese yen. After all, the Bank of Japan continues to keep interest rates very low, and that of course has its effect on not only this currency pair but every other yen related pair.

The 50-Day EMA underneath has offered both support and resistance in the past, so it does make a certain amount of sense that we eventually go higher. The market breaking down below there only attracts more value hunters, or perhaps more importantly, people willing to step in and sell the Japanese yen yet again.

The ¥185 level above is the target for the time being, and it is an area where we’ve seen some resistance previously. If we break above there, then we can start to threaten the idea of going to the ¥190 level, which I still think is very much possible. The British pound of course is not necessarily the primary way I would want to short the Japanese yen, but nonetheless I think there is still a “knock on effect” from the Bank of Japan and its actions regardless.

The British pound has struggled a bit recently, at least until the last couple of days under threat of a recession in the European Union, so that is worth keeping in mind, therefore I think it underperforms going forward. However, the last 24 hours has seen a little bit of “catch-up” enter the fray, so I think that there will be plenty of buyers on this dip. The pair also has a significant risk appetite factor as well, as it looks like the market will typically run toward the Japanese yen in times of trouble, but at the same time, the Bank of Japan has gone so far out of its way to destroy its own currency, that correlation could be breaking down as well.

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