GBP/JPY Weekly Forecast – British Pound Tests Ceiling Against Yen

GBP/JPY Forecast Video for 17.04.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied significantly during the course of the week to reach the ¥166 level, an area that of course is the top of the overall range we had been in for a while. Because of this, it’s very likely that we will continue to see this market bounce around, with this area just above offering quite a bit of trouble. Ultimately, the market does look very bullish, but at the same time you can make the argument that it is in fact going to be a situation where we are little overstretched, and it’s obvious that the sellers keep returning to this market every time we get here.

On the downside, the 50-Week EMA sets right around the ¥162 level and is rising, perhaps offering a bit of potential support. In that environment, I think you’ve got a situation where the market will probably find plenty of buyers on dips, especially as the Bank of Japan continues its yield curve control policy. As long as that’s the case, the yen related repairs will continue to have a bit of a floor in them, and therefore I think you have to look at dips as an opportunity to pick up value, as the British pound has been one of the better performing currencies around the world. Ultimately, I think we got a situation where the market continues to see volatility, but it certainly looks as if it is favoring the overall upside, but that does not necessarily mean that you need to see some type of major melt up, rather more of a gradual grind.

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