GBP/JPY Weekly Forecast – British Pound Continues to Consolidate Against Yen

GBP/JPY Forecast Video for 13.02.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has shown itself to be somewhat negative during the course of the week as we struggle for clarity. We are trading in a range and have been for several weeks now. The 50-Week EMA sits right around the ¥161 level, and I think is going to continue to offer a bit of resistance. If we can break above all of that, then it’s likely that we could go to the ¥165 level above. On the other hand, if we turn around and break down below the crucial ¥155 level, then I think the bottom falls out this market. That being said, it’s worth noting that we have a long wick from several months ago where we have broken down below the ¥155 level. The 200-Week EMA is sitting right around the ¥152.50 level.

At this point, I think it’s more or less going to be a situation where we go back and forth, trying to figure out where we are heading for a bigger move. Ultimately, this is a scenario where I think you are probably stuck with short-term trading and back and forth momentum. Because of this, longer-term traders will probably shun this pair, but it is worth noting that we have a couple of obvious levels to pay attention to, so in that scenario you have to think about this through the prism of whether or not we have any real reason to take off in one direction or the other. Keep in mind that the Bank of Japan continues its bond yield curve control program.

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