GBP/JPY Weekly Forecast – British Pound Gives Up Early Gains for the Week Against the Yen

GBP/JPY Forecast Video for 31.10.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound initially tried to rally during the course of the week but gave back gains near the ¥183.50 level. The ¥183.50 level is an area that a lot of people have been paying attention to from both a resistance and support side of things, and therefore think it’s probably only a matter time before we have to make some type of bigger decision. The shooting star that we ended up forming is of course negative, but if we can break above the top of it, it would show a real breach of downward pressure, opening up the possibility of a move to the ¥185 level.

Due to the fact that we have a significant amount of distance on the wicks in both the up and downward direction, the reality is that the market is probably going to consolidate a bit further. This does make a certain amount of sense considering that we shot straight up in the air for a while, and now we are simply trying to work off some of that excess froth.

Keep in mind that the pair is highly sensitive to risk appetite, and therefore you should keep an eye on how other markets are behaving in general. If the markets are all rallying, that typically will let this pair as the British pound is favored over the Japanese yen, quite often thought of as a safety currency, although it must be stated in the last several months people have been more or less focusing on the idea of lower interest rates in Japan and of course quantitative easing. Therefore, I do think that eventually we go higher.

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