GBP/JPY Weekly Forecast – British Pound Continues to Grind Higher

GBP/JPY Forecast Video for 28.11.22

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied during the course of the trading week against the Japanese yen, as we continue to see the efforts of the Bank of Japan work against the value of the yen itself. By keeping yield curve control in place, they are essentially printing unlimited yen, and that has been a major factor as to why the yen continues to lose value.

On the other side of this equation is the British pound, which has a whole host of its own issues. Yes, we’ve recently seen a bit of a recovery in the pound, but at the end of the day the British economy is going to go through a two-year recession. If that’s going to be the case, this pair will continue to underperform other yen related pairs, despite the fact that the Bank of England has to worry about inflation. This is not to say that the pair cannot go higher, just that you may get more mileage out of another one such as the AUD/JPY pair, or the NZD/JPY pair, and possibly even the USD/JPY pair.

Selling is something I’m not interested in, but if we do suddenly see the Bank of Japan change its overall attitude, this would be the first place I would be looking for selling opportunities. In that case, this underperforming currency pair will almost certainly be a massive short just waiting to happen. Nonetheless, this remains a “buy the dip” type of pair, although it is one of my least favorite yen related pairs to be involved in at the moment. A simple look at the erratic behavior tells you why.