GBP/JPY Forecast – British Pound Turns Around After Initial Selloff

GBP/JPY Forecast Video for 06.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially fell against the Japanese yen during the trading session on Tuesday, but then turned around to show massive bullish pressure. After all, the Japanese yen sold off against almost everything, and the British pound was going to be no different. With that being the case, the market looks as if it is trying to do everything it can to get to the ¥187 level, which is near the recent highs. Short-term pullbacks should continue to be buying opportunities, with the ¥183 level underneath being a significant support level. Ultimately, I do think that you have a situation where the market could be very volatile and choppy over the next couple of days, but we are in a longer term uptrend and I just don’t see how that changes easily.

With that being said, the 50-Day EMA sits right around the ¥183 level, and that of course is something that you need to pay close attention to. The 50-Day EMA is something that a lot of people watch, so it should attract a significant amount of interest from what I can tell. If we were to break down below there, then I think the ¥180 level comes into the picture as a potential support level as well. Keep in mind that interest-rate differential favors the British pound and almost any other currency against the Japanese yen so the yen related pairs will probably all move in the same direction by the time it is said and done.

I have no interest in selling this market and I look at every pullback as a potential buying opportunity. After all, the Bank of Japan is going to do nothing to change the trajectory of its interest rates, and therefore there’s no real reason to think anything changes here. With that being said, I remain very bullish but I also recognize that things could get rather nasty at times, so be cautious and don’t get overly aggressive. On a break of the highs, then I believe that this pair goes looking to reach the ¥190 level before going even higher to reach the ¥200 level over the longer term.

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