GBP/JPY Weekly Forecast – British Pound Recovers to Test Major Barrier Against Yen

By:

Published: Jun 9, 2023, 13:47 UTC

The British pound initially fell during the trading week, showing signs of noise and negativity until we bounced from the ¥172.50 region. At the time of writing, we are threatening the ¥175 level.

GBP/JPY Forecast Video for 12.06.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound initially pulled back just a bit during the trading week just to show signs of support near the ¥172.50 level. At that point in time, the market turned around to show signs of life as we slammed into the ¥175 level. This of course is an area that is a large, round, psychologically significant figure, and an area that I think we would see a lot of noise at. We did peak above there, but the market is struggling to break out above, therefore, a longer move. The shape of the candlestick is a little bit of a hammer, and as a result, it’s likely that we would continue to see a lot of upward pressure given enough time.

If the market were to break above the ¥175 level on a sustainable move, then it’s very likely that we could go to the ¥177.50 level. After that, you could see a potential move to the ¥180 level, and I do think in the longer term that’s probably where we go. However, you can see a lot of noisy behavior on the way up here, and it is a little bit overstretched at this point. If we were to turn around and find some type of pullback, that should continue to be a lot of value just waiting to happen. On the other hand, I do think it is probably only a matter of time before we go much higher. The ¥170 level underneath is a major support level and is not until we break down below there that I would anticipate that the market would go down for any significant amount of time.

All things being equal, this is a market that I think continues to see a lot of noise, where you will have to be very cautious with your position size, but ultimately this is a one-way trade as far as everything is concerned. All things being equal, this is a market that I think continues to see a lot of volatility, but it’s more upward pressure than anything else at this point in time.

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

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.