GBP/JPY Weekly Forecast – British Pound Gives Up at Same Resistance Point

GBP/JPY Forecast Video for 30.01.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has gone back and forth during the course of the trading week, as we are sitting above the ¥160 level, and try to figure out where we are going next. If we can break above the top of the weekly candlestick, then it’s possible that we could go to the ¥162.50 level. If we can break above there, then it opens up the possibility of a move to the ¥165 area, where we had fallen rather hard from.

If we break down below the bottom of the candlestick, it opens up the possibility of a move down to the ¥157.50 level, and then possibly down to the ¥155 level. Ultimately, the ¥155 level looks very important for support, and therefore it’s likely that we continue to see a lot of volatility and questions asked of this pair. Ultimately, this is a pair that I think is going to move back and forth with the idea of the Bank of Japan scheming with its bond yields, as they are trying to keep the 10 year JGB down to 50 basis points.

Because of this, if the yields start to rise, the Japanese have to print yen, which can put upward pressure on this pair. On the other hand, if yields start to drop around the world, that could help the Japanese yen, simply because it would put a lot less pressure on the Bank of Japan to print that currency. At this point, I think we are more likely than not going to see a lot of noisy behavior and range bound trading.

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