GBP/JPY Weekly Forecast – British Pound Shoots Higher Against Japanese Yen

GBP/JPY Forecast Video for 20.02.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has skyrocketed against the Japanese yen during the course of the week, breaking above the 50-Week EMA. This is a market that continues to see a lot of noise and therefore I think a lot of buyers on dips. It does look like we are trying to form some type of bottoming pattern, especially when you look at it through the prism of the daily chart. When you look at this chart, it’s worth seeing that the ¥160 level has been overtaken as well, which of course is a bullish sign as we are taking out a big round figure.

Breaking above the ¥162.50 level would allow this market to go looking to the ¥165 level, which is an area where a lot of people would pay close attention to. The recent pullback has been very strong, but it also has shown a significant amount of support underneath that a lot of people would be paying attention to. The ¥170 level above could be the huge prize in the sky, so that might be what we are looking for.

However, we need to see more interest rate hikes or at least bonds start to show more bullish behavior with yields, as the Bank of Japan will have to do everything he can to fight that pressure against its 10 year yield. After all, they are trying to keep it at 50 basis points or less. In order to do so they will continue to print Japanese yen, and that of course continues to work against the value of the currency itself as it floods in the market. The size of the candlestick does suggest that we are going to continue to see buyers jump in eventually.

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