GBP/JPY Forecast – The British Pound Pulls Back Towards Gap
GBP/JPY Forecast Video for 08.02.23
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen rather hard during the trading session on Tuesday to fill a gap. At this point, there should be buyers underneath but we will have to wait and see whether or not that plays out. Typically, there should be plenty of interest in this area, and if we see the Japanese yen lose strength across the board, it makes quite a bit of sense that we could see this pair rally back toward the ¥160 level.
The ¥157.55 level is an area that has been important multiple times, so at this point I think you’ve got a situation where the market is trying to find a certain amount of buying pressure. We have been consolidating for a while so this would make quite a bit of sense. The market has been trying to build some type of base after the massive selloff and the Bank of Japan allowing the 10 year interest rate to rise to 50 basis points. However, we have seen the market hang around this area in order to try to build some type of basing pattern to turn things around. Whether or not that actually happens remains to be seen, but it certainly looks as if we are making a significant attempt to do so.
At this point, rallies will more likely than not go looking to the ¥160 level, and then after that the ¥161.50 level. Ultimately, this is a situation where choppy conditions will continue to be a major factor in this market, so keep an eye on your position size in this turbulent market.
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