GBP/JPY Weekly Forecast – British Pound Has a Strong Week Against Yen

GBP/JPY Forecast Video for 03.04.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied rather significantly during the trading week to reach the ¥165 level, an area that of course is a large, round, psychologically significant figure, and it is also an area where you would expect to see a certain amount of resistance. Ultimately, this is a pair that is trying to go higher over the longer term, but I think it’s going to be a much choppier affair than simply going straight up in the air. Underneath, I think the ¥160 level is going to be an area that we will have to pay special attention to, as it is a large, round, psychologically significant figure as well. Furthermore, we have seen a bit of support there previously, so I do think that it comes back into the picture.

The size of the candlestick is rather impressive, so one would have to think that eventually we could see some type of upward shot, and clearly the momentum is to the upside more than anything else, but that is extraordinarily noisy, so I don’t think this is a situation where it is going to be very easy to go higher. On the other hand, you should also keep in mind that the Bank of Japan continues to do its yield curve control scheme, meaning that they will be under pressure to keep interest rates down, and that’s part of what’s been working against the Japanese yen. On the other hand, if we get some type of run towards bonds, driving yields down, that will send this pair lower. I think we continue to cease all the way back to the recent highs.

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