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

GBP/JPY Forecast Video for 06.11.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied rather significantly during the course of the trading week against the Japanese yen, as we are now pressing the ¥185 level. The ¥185 level is a large, round, psychologically significant figure, and an area where we have seen a lot of selling pressure previously. Because of this, if we break through there I think it will attract a lot of attention, as every time we have tried to break through there, sellers have come in and not allowed the weekly candlestick to close above it.

Underneath, the ¥181 level is an area of significant support, extending down to the ¥180 level. Anything below there opens up even more selling pressure, but right now I think it’s probably more likely than not that we are going to find buyers every time we dip. I have no interest in shorting this market, and I do believe that given enough time we probably have reasons to find upward momentum. The interest rate differential alone is good enough to drive this market higher, and of course the fact that you get paid at the end of every day is reason enough to think about owning this pair.

If we were to break down below the ¥178 level, then it’s possible that we could drop down to the ¥175 level, but that doesn’t seem very likely at this point and therefore it’s not really a thought. At this point, I like the idea of finding value every time it dips, and may drill down to shorter-term charts in order to find entries. If we can clear the recent swing high, then I think this market has an opportunity to go much higher.

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