GBP/JPY Forecast – British Pound Continues to Grind Higher Against the Japanese Yen

GBP/JPY Forecast Video for 18.04.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth against the Japanese yen during the trading session on Monday, as we continue to see a lot of noisy behavior. Alternatively, this is a situation where we will have to continue to see a lot of questions being asked, and therefore I think you also have to look at this through the prism of whether or not we are going to continue to see noise, or if we are going to see some type of shift in attitude.

It’s worth noting that we are at the very top of a major negative candlestick, and therefore it’s likely that if we break above that candlestick from December, then it’s very possible that the market could rally all the way to the ¥169 level. Above there, it becomes more or less a “buy-and-hold” type of situation. Ultimately, this is a scenario where it would be more or less a “risk on” situation.

If we do pull back from here, the ¥165 level opens up the possibility of a move down to the 50-Day EMA which is closer to the ¥163 level. Anything below there then opens up a move down to the 200-Day EMA, which is sitting right around the ¥162.50 level. Anything below that then opens up the possibility of a move down to the ¥160 level, which is where we have seen support previously.

All things being equal, this is a situation where I think you will continue to see a lot of noisy behavior, but eventually we should get some type of conclusion. That being said, it’s probably worth noting that the Japanese yen is struggling a bit across the board and that combines quite well with the British pound strengthening overall. With that being the case, then I think it’s ultimately a scenario where you are buying strength and selling weakness in despair. I like the idea of buying dips if we get the opportunity to pick up a little bit of value, by waiting for signs of support after selloffs.

For a look at all of today’s economic events, check out our economic calendar.