GBP/JPY Weekly Forecast – British Pound Threatening a Major Break Out Against the Yen

GBP/JPY Forecast Video for 01.05.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has initially pulled back during the week, only to turn around and show signs of strength. The ¥170 level is an area that obviously will cause a little bit of psychological resistance, and a little bit of pushback due to the fact that we have a lot of supply over that level. That being said, if we break above there then the ¥172.50 level is your next target. Anything above there opens up the possibility of a move to the upside, perhaps opening up more of a “buy-and-hold” type of situation.

That being said, we are a bit stretched, so I would look for a short-term pullback to take advantage of. The ¥165 level underneath is the floor in the market now, and therefore if we were to break down below there I would have to reevaluate the entire market. Ultimately, I think this is a scenario where the market could very well take off for a huge move. On the other hand, we may need to pullback in order to bring in more buyers, which would be typical after being overstretched the way we have been.

Because of this, I think it’s probably only a matter of time before buyers will jump into what’s been obviously a bullish market, and the fact that the Bank of Japan has reiterated its desire to do yield curve control adds even more fuel to the fire of this market. Ultimately, I remain to buy on dips until something changes in a major way, something I just don’t see happening anytime soon.

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