GBP/JPY Weekly Price Forecast – British Pound Powers Higher

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied during the week, after initially dipping rather significantly. The ¥165 level seems to be offering support yet again, and now as I right this article, we see the British pound above the ¥170 level. Whether or not it clears it cleanly by the end of the session is a completely different question, but it certainly looks like it’s only a matter of time at this point. With that in mind, I like the idea of buying dips, and I do think that eventually we go looking toward the ¥175 level. Furthermore, you have to keep in mind that this is a market that will continue to be very noisy overall, so you need to position size accordingly and understand that things may be difficult moments along the way.

The Bank of Japan continues to print unlimited yen in order to buy unlimited bonds, and as long as that’s going to be the case, even the lowly British pound will fare well against this currency. The Bank of Japan has intervened a couple of times, but at the end of the day that has not changed much, and of course we have seen a continued pressure to the upside in all yen related pairs.

The market continues to be very noisy, and therefore caution is the better part of valor, but it’s obvious that we are in an uptrend, and that’s not going to change anytime soon. With this, I’m looking at pullbacks as value along the way and taking advantage of it whenever I can. That being said, keep in mind that the British pound has its own issues, so it’s possible this pair may underperform other ones.

GBP/JPY Price Forecast Video for 31.10.22

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