GBP/JPY Weekly Forecast – British Pound Continues to Skyrocket

GBP/JPY Forecast Video for 19.06.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound rallied rather significantly during the course of the week, using the ¥175 level as a launching pad. Looking at the size of the candlestick, it’s obviously a very bullish move, and we have broken through a ton of massive resistance. At this point, we’re even above the ¥180 level, which is a large, round, psychologically significant figure. That being said, we need some type of pullback in order to get involved. Chasing the trade all the way up at this level is very dangerous.

Markets can’t go straight up in the air forever, and you need to be very cautious with that type of attitude. I think at this point you need to find value, and that value may look kind of scary at one point. We might see some type of massive move lower in the short term, that is what gets people bailing. You need lower prices, even if I do think that given enough time, we will reach the ¥200 level. Obviously, that is a longer-term target, and even though we got to the ¥180 level much quicker than anticipated, I don’t envision a market where we take off straight up in the air to the ¥200 level.

If we were to turn out and break down below the ¥165 level, then it’s possible that we could go down to the ¥172.50 level, an area that had been supported during the previous week. Below there, then we have the ¥170 level. All things being equal, this is a market that I think eventually find buyers on dips, and you need to be one of them if you plan on getting involved. If you are already long of this market, then it’s about trade management.

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