GBP/JPY Weekly Forecast – British Pound Continues to Threaten a Breakout

GBP/JPY Forecast Video for 14.08.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound rallied significantly during the course of the trading week, as the Japanese yen continues to be a bit of a punching bag for most currencies. That being said, the market is likely to continue seeing a lot of volatility in this general vicinity, mainly due to the fact that there is without a doubt a lot of resistance just above. Nonetheless, the Bank of Japan and its ultra-loose monetary policy continues to work against the value of the yen, and I do think that it is probably only a matter of time before we make it to the ¥185 level. The ¥185 level of course is a large, round, psychologically significant figure, but it’s also an area that previously had seen some action in the past.

Short-term pullbacks at this point should continue to be buying opportunities, but I don’t necessarily think this market is one that is going to be stable. After all, we continue to see a lot of noise in general when it comes to risk appetite and this pair is highly sensitive to risk appetite. Underneath, the ¥180 level should offer support, and therefore if we were to break down below it I think that would be a big deal. With this, I like the idea of buying dips, and perhaps taking advantage of “cheap British pounds.” I don’t have any interest in buying the Japanese yen whatsoever, and I do think that it continues to struggle on the whole. After all, with the Bank of Japan being so aggressive in its quantitative easing, nobody wants to own the currency.

For a look at all of today’s economic events, check out our economic calendar.