GBP/JPY Forecast – GBP/JPY Tests the 50-Day EMA

GBP/JPY Forecast Video for 29.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the course of Thursday, as it looks like we are threatening the 50-Day EMA. That being said, you need to be somewhat cautious trading this pair, due to the fact that it is so volatile and of course the Bank of Japan has its hands in this pair as well, by jawboning the value of the yen back up occasionally. Nonetheless, the British pound itself is a very sick looking currency, so if you are going to find something against the yen, I don’t necessarily think that the British pound is your answer.

True, this pair should go higher over the longer term, perhaps reaching ¥185 again someday, but right now I think you are better off shorting the yen against the US dollar, gold, and a whole host of other things. The ¥180 level underneath should continue to be supported, and I think that given enough time we will almost certainly see it come into the picture for importance. With this being said, I think that there is a certain “buy on the dip” mentality out there, but I think this pair moves to the upside much slower than many others.

If we were to break down below the ¥180 level, it opens up the possibility of a move down to the ¥177.50 level, an area that did offer a certain amount of support previously. Below there, then you have the ¥175 level which also features the 200-Day EMA. Expect a lot of volatility and choppiness, and again, if you were to short the Japanese yen, the British pound is probably not your solution.

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