GBP/JPY Forecast – British Pound Breaks Through

GBP/JPY Forecast Video for 17.08.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the trading session on Wednesday, as we are now well above the ¥185 level. This was a barrier that we have been trying to break above for a while, and now this market most certainly shows a “buy on the dips” attitude. This is of course assuming that we are going to continue to see any type of pullback in the short term. I think we are more likely than not going to see plenty of upward trajectory, so I have no interest whatsoever in shorting this pair. The 50-Day EMA sits right around the ¥180 level, and I think at this point anything in that general vicinity would be thought of as a major disaster for the bullish trend.

Looking at this chart, I think it’s probably only a matter of time before we can look into the ¥190 level, but obviously we have a long way to go before we can make that move. Furthermore, I think that given enough time we eventually go all the way to the ¥200 level, which is my longer-term target, and although it sounds like a big move, quite frankly the interest rate differential will continue to open up the possibility of higher pricing. With this, I think it’s probably only a matter of time before we go much higher and of course you do get paid to hang on to this trade. This is something that you cannot ignore, as bigger firms will most certainly take advantage of the financing rates.

The occasional pullback will occur, and that of course does open up the possibility of finding value, which is exactly how I look at this market. Because of this, and the fact that we are extended over the last couple of weeks, I suspect that it is probably only a matter of time before we get that pullback, but that pullback should see plenty of support near the ¥185 level, as it was a psychologically important resistance level, and an area where I think you’ve got a bit of potential noise ahead for the market.

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