GBP/JPY Weekly Forecast – British Pound Completely Reverses Trajectory Against Yen

GBP/JPY Forecast Video for 09.10.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has initially plunged against the Japanese yen during the trading week, dropping well below the ¥180 level. However, we have turned around quite drastically, especially on Friday. By doing so, suddenly the weekly candlestick looks a bit bullish. That doesn’t necessarily mean that we have to go higher, but it certainly shows just how important the ¥180 level is. With that being the case, I think you get a situation where the market will continue to look at this as a “buy on the dips” type of scenario, and therefore I’m looking for value in order to get long again. If we can break above the ¥185 level, then we can start to chip away at a major resistance barrier.

A breakdown below the bottom of the candlestick for the week could open up a move down to the ¥175 level, which was a major support level previously. I don’t necessarily see that happening, but you never know, we could get some type of major “risk off event” that sends this pair much lower. As things stand right now, I still believe that the market is likely to continue seeing a lot of value in going long of this pair, if for no other reason than the massive interest rate differential between the 2 currencies. Remember, you get paid quite well to hang on to this position, therefore it becomes a bit of an investment. Ultimately, I am bullish, but I also recognize that volatility will continue to be a major problem in not only this market, but most others.

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