GBP/JPY Forecast – Pound Pulled Back Slightly

GBP/JPY Forecast Video for 28.11.23

British Pound vs Japanese Yen Technical Analysis

The Japanese yen got a bit of a reprieve during early trading on Monday, and that will have been no different against the British pound. That being said, this is a market that is still very much in an uptrend, and is difficult to imagine shorting the pair anytime soon. With that in mind, I think you have to look at this through the prism of buying dips when you can, and an eye on the ¥185 level underneath would be prudent as it should offer support due to not only the fact that it is a large, round, psychologically significant figure, but it has already proven itself. Furthermore, the 50-Day EMA sits underneath there and is rising.

Because of this, I think it’s probably only a matter of time before the dip gets bought into, and the market goes racing toward the ¥190 level. In fact, I believe that happens much sooner than most people are willing to suggest. Keep in mind that the Bank of England remains very tight with its monetary policy, and it shows no signs of slowing down. On the other hand, you have the Bank of Japan which has absolutely no chance of tightening anytime soon, and therefore I think you will continue to see traders hang onto this market in order to take advantage of the massive swap differential between the 2 interest rates. With that, I buy value when I see it, and I have no interest in shorting this pair anytime soon. Once we break above the ¥190 level, traders will start to think about the ¥200 level over the longer term.

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