GBP/JPY Forecast – British Pound Finds Buyers on Dips

GBP/JPY Forecast Video for 16.11.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the course of the trading session on Wednesday, testing the ¥187.25 level. At this point, it looks like the market is trying to turn around and take off to the upside, as interest-rate differential continues to drive this pair. The Bank of Japan is nowhere near loosening its monetary policy, and therefore it’s likely that this pair will continue to go higher. That being said, the British pound also pulled back against the US dollar, so it is a little bit hesitant against the yen at this point. Either way, I have no interest in shorting this market, because quite frankly I have no interest in owning the Japanese yen.

The ¥185 level underneath is the “floor in the market” and will continue to be. If we can break above the high of the Tuesday session, I think at that point we will see the British pound trade toward the ¥190 level, which is the next large, round, psychologically significant figure. Breaking above there then opens up the possibility of a move to the ¥200 level, which I think is a very real possibility at this point as interest rates continue to be so wide apart between the 2 central banks. Quite frankly, the only thing that’s more likely than not going to move this market to the downside is if the Bank of England suddenly starts loosening its monetary policies as the Japanese have already shown themselves unable to be moved at this point in time. I still am bullish, and I like buying dips as a way to pick up a bit of value.

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