GBP/JPY Weekly Forecast – British Pound Rallies a Bit Against the Yen

GBP/JPY Forecast Video for 23.10.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied during the course of the week against the Japanese yen as we continue to see upward pressure. The ¥180 level underneath could offer a significant amount of support, as we have seen the market turnaround every time it dips down to that area. To the upside, you have the ¥185 level, an area that should be significant resistance. Ultimately, if we can break above there, then it is likely that the market could go looking to much higher levels, perhaps even as high as ¥200 which I think is a very real threat over the longer term.

After all, the Bank of Japan continues to see the need to keep loose monetary policy, stepping into the bond market in order to keep rates down. The Japanese economy is saddled with so much debt that it really has no choice, and therefore it’s likely that every time this market pulls back there should be buyers willing to get involved. This will be especially true as long as the British economy continues to offer decent yields, and this is just simply a “carry trade” being played out.

If we were to break down below the couple of hammers that we have seen over the last several weeks, then you could get a move down to the ¥175 level, which is where the 50-Week EMA currently is racing toward. While I don’t see that happening, that could be your “floor the market.” Overall, I think this continues to be a “buy on the dips” type of market. I have no interest in shorting anytime soon, unless of course the Bank of England changes its monetary policy, or even less likely, the Japanese do.

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