GBP/JPY Weekly Forecast – British Pound Continues to Attempt to Break Out Against Yen

GBP/JPY Forecast Video for 22.05.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has had a very strong week, breaking well above the ¥170 level to show signs of life again. By doing so, the market looks as if it is ready to break above the recent highs, and as I write this article, it is in the process of attempting to do so. I like buying the pound against the Japanese yen on either the actual breakdown or short-term pullbacks. I certainly would not be a seller of this pair, as it is so bullish. With that being the case, the route that I plan on taking is finding value on dips to get long, but I also recognize that simply buying and holding might be a way that traders can take advantage of this pair.

Underneath, I see the ¥170 level as potential support, followed by the ¥168 level. The size of the candlestick does suggest that perhaps we will have plenty of momentum that we can take advantage of, and therefore I think it’s probably a situation where we should have plenty of opportunities in the future. After all, the Bank of Japan continues to engage in quantitative easing, which is toxic for a currency. At the same time, the Bank of England is practicing tight monetary policy, which sets up for a perfect move. That being said, you don’t want to get over levered into the market because this one does tend to be very erratic under the best of circumstances, and we need to always take caution when trading this pair. However, it’s got a definite upward bias.

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