GBP/JPY Forecast – British Pound Takes a Dip Against Japanese Yen

GBP/JPY Forecast Video for 31.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen a bit against the Japanese yen during the early hours on Friday as we continue to see the market hang around in the same general vicinity. Because of this, the market is likely to continue to respect the same old levels. The ¥181 level has been supported, and most certainly the ¥180 level underneath there has as well.

On the other hand, if we were to break to the upside, the 50-Day EMA is a significant barrier that a lot of people will pay attention to, but it is flat, suggesting that we are going to continue to slice back and forth. The ¥183.50 level is an area of resistance that people will have to pay close attention to. If we can break above there, then it’s likely that the market could go looking to the ¥185 level, which is a large, round, psychologically significant figure and an area where we have seen a lot of selling pressure at.

In general, this is a situation where I think you continue to see a lot of volatility, and of course this pair is highly sensitive to the overall risk appetite, so you should pay close attention to it. The market tends to rise when we are more or less “risk on” than when we are more “risk off.” That being said, the market is more likely than not just going to be a situation where you are looking at the market through the prism of back-and-forth range bound trading, with an upward tilt.

The market breaking below the ¥180 level would be a significant breakdown, but that doesn’t seem to be very likely at this point. On the other hand, it’s going to take a significant amount of momentum to send the market above the ¥185 level, and therefore testing the most recent highs. If we have that happen, it’s very likely that the market is looking to the ¥190 level, and then eventually the ¥200 level which I do think it’s a very real possibility with the Bank of Japan and its loose monetary policy being in effect still.

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