GBP/JPY Weekly Forecast – British Pound Gives Up Early Gains for the Week

GBP/JPY Forecast Video for 16.10.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound had initially tried to rally during the course of the week, but then gave back the gains to show signs of hesitation. The ¥180 level underneath is a major support level, and therefore if we do reach the area, the market will probably see some buyers head back into the market. If we break down below the bottom of the candlestick from the previous week, then the market is likely to collapse at that point, going down to the ¥175 level, and then possibly the 50-Week EMA.

On the other hand, if we were to turn around and take out the top of this past week, then it opens up the possibility of a move to the ¥185 level. The ¥185 level has seen a massive amount of resistance previously, but it seems like at this point in time the market continues to go back and forth between the ¥185 level and the ¥180 level, as we are working off a lot of froth from previous bullish behavior.

All things being equal, this is a scenario where I think you need to be cautious, and you probably need to trade shorter-term charts in order to trade this market as it will continue to be very noisy. Ultimately, we will have to make a bigger decision, but in the short term it looks like we are to simply banging around and trying to sort out where we are going from a risk appetite standpoint. As things stand right now, it looks like we are a bit cautious, and therefore probably going to struggle breaking out.

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