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

GBP/JPY Forecast Video for 06.03.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound initially had a very bullish look to it this week, as we had seen so much in the way of bullish pressure. We broke above the ¥165 level during the middle of the week but keep back all of the gains to rule in what would have been an explosive move. Because of this, I think you’ve got a situation where you have to look at this through the prism of whether momentum has been completely destroyed. It’s worth noting that the ¥165 level was an important area previously, so I do think it makes a certain amount of sense that it caused a bit of a pushback. However, we gave back almost all of the gains and that of course is not a good look.

At this point I would anticipate that there are a couple of support levels of people will be paying attention to, not the least of which will be the ¥162.50 level, where we had tested earlier this week. If we break down below there then you have the ¥161 level where the 50-Week EMA sits, followed by the ¥160 level. While this is an ominous candlestick, it does not necessarily mean that we are going to shoot straight to the downside. Because of this, a certain amount of caution is probably necessary but it certainly looks as if something changed this week. Expect a lot of choppy volatility, but when you look to the left on the chart, you can see that there has been a lot of noise in this area to begin with. With that in mind, I remain very skeptical of bigger moves.

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