GBP/JPY Weekly Forecast – The British Pound Pulls Back From Crucial Highs

GBP/JPY Forecast Video for 08.05.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has been very active during the trading week, as we have seen it reach to a fresh, new high, only to turn around and plunge later in the week. By the time Friday came around, we started to see strength again, as it looks like the overall trend is going to continue. With this being the case, I anticipate that eventually we break above the highs of the week, and continue to go higher, perhaps reaching toward the ¥175 level.

On the other hand, if we turn around and break down below the bottom of the candlestick, then it opens up the possibility of a move down to the ¥165 level, which is an area that has been an important multiple times in the past, therefore I think we have a situation where the market may have seen quite a bit of noise in that area, but I don’t necessarily think that it is reason enough to be overly concerned about reaching that area. If we do, then I would anticipate seeing a lot of value hunters coming back into the market as interest rates are obviously climbing around the world.

Furthermore, the British economy is going to continue to see a lot of inflation, therefore it makes quite a bit of sense that we would continue to see the British pound strengthen against other currencies such as the Japanese yen. Keep in mind that the Bank of Japan continues to do everything it can to keep its interest rates down, so therefore it will have to print currency, driving down the value as they flood the market with more currency.

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