GBP/JPY Forecast – British Pound Continues to Chop Back and Forth

GBP/JPY Forecast Video for 10.02.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Thursday as the Forex markets continue to be very choppy. Keep in mind that the Bank of Japan is doing everything it can to keep interest rates down, meaning that they are buying unlimited bonds in that country, which is essentially the same thing is printing currency. This quantitative easing makes the Japanese yen less attractive, and although we have seen a major run toward it as of late, every time global interest rate spike just a bit, people freak out and run right back toward the other currencies.

I think that continues to be the game going forward, and therefore it’s likely to continue to be a very noisy currency pair. The ¥160 level above will more likely than not cause a bit of resistance, and I do think that it is probably only a matter of time before we attempt to take that out. If we do, the ¥161.50 level will be a major barrier that we have to contend with. If we can break above that level, the 200-Day EMA is sitting right there as well.

In other words, I think we probably continue to be choppy more than anything else, so I’m not necessarily looking for a huge run one way or the other. I think this continues to be more of a back-and-forth type of market, and I also believe that is probably true with most currency pairs around the world. Ultimately, short-term range bound trading will more likely than not continue to be the norm in this pair.

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