GBP/JPY Weekly Forecast – British Pound Drops Against Japanese Yen for the Week
GBP/JPY Forecast Video for 25.09.23
British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has fallen during the course of the week, which makes sense considering that the Bank of England decided to keep interest rates flat. By doing so, it shows that there is perhaps some concern out there when it comes to the UK economy, and therefore the British pound may struggle a bit. However, the Bank of Japan did the same thing, so I think once the dust settles, it means that we will continue to see a lot of the same behavior. Because of this, I fully anticipate that there will be a “buy on the dips” opportunity, but we may have to test the crucial ¥180 level before we do it.
If we break above the top of the candlestick for the week, then it opens up the possibility of a move toward the ¥185 level. The ¥185 level is an area that I think a lot of people have to pay close attention to, and if we were to break above there, then it’s likely that the market goes much higher, as we continue to see the interest rate differential drive this pair much higher. I have no interest in shorting this pair anytime soon, as the interest rate differential continues to pay you at the end of the session every day. That being said, it doesn’t mean that we will get the occasional pullback, but I think it opens up the possibility of looking at this as a value proposition more than anything else. Alternatively, I do think that we break out to the upside although it may take some time to get there.
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