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

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.