GBP/JPY Forecast – British Pound Continues Recovery Against Yen

GBP/JPY Forecast Video for 14.09.23

British Pound vs Japanese Yen Technical Analysis

The British pound initially pulled back a bit against the Japanese yen during the trading session on Wednesday, but it has turned around as we continue to see a bit of recovery. Ultimately, it looks like the uptrend is very much intact and I just don’t see how this changes anytime soon. The ¥185 level above is the target, and I think we get there over the next several days, but keep in mind that this area has been very noisy, and until things change, I don’t really see this is a situation that will be easy to make money in. That being said, the only direction from here will be up. Just make sure that your position size is reasonable enough to be able to handle the undoubtedly noisy and choppy behavior that we have ahead.

On dips, I believe that the 50-Day EMA continues to be a short-term buying opportunity as it should offer plenty of support. Breaking down below that level could open up a bigger move down to the ¥180 level, which I look at as the “floor in the market” currently. If we were to break down below there, that could change a lot, but it would take a lot to make that happen as things stand right now. Because of this, I like the idea of buying dips and I do think that eventually we will get the breakout to go looking toward the ¥200 level. That obviously is a large, round, psychologically significant figure, and it most certainly will be an area that will attract a lot of attention. While most traders out there will have reservations imagining the British pound being worth ¥200, the reality is that it has been at that level multiple times in the past.

As things stand right now, this remains a “buy on the dip situation as far as I can tell, and of course as long as the Bank of Japan stays loose with its monetary policy, there’s no real reason to think that this market falls apart anytime soon. Yes, there are some concerns about the British economy, but at the end of the day the interest rate differential still remains very wide.

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