Yahoo Finanza GBP/JPY Forecast – British Pound Continues to Pressure the Upside Against the Japanese Yen
GBP/JPY Forecast Video for 02.06.23
British Pound vs Japanese Yen Technical Analysis
The British pound has initially pulled back just a bit during the trading session on Thursday but has turned around to show signs of life again. Ultimately, it looks as if the market is trying to do everything he can to break out to the upside, and if we can break out above the ¥174 level, then it’s possible that the market could go much higher, perhaps reaching toward the ¥175 level. Ultimately, I think this is a market that will eventually break out to the upside, and it’s more of a “buy on the dips” type of situation.
When you look at the chart, the ¥170 level is a major support level that we will have to pay close attention to as support, especially with the 50-Day EMA running toward it. Because of this, it’s probably only a matter of time before we see buyers coming back into the market and start picking up value along the way. I don’t necessarily think that it’s going to be a straight shot higher, but I certainly believe that the buyers have most of the control at the moment.
Furthermore, keep in mind that the interest-rate differential between Great Britain and Japan continues to be huge, therefore it does make quite a bit of sense that we continue to see the pair go higher based on the interest-rate differential, and of course the so-called “carry trade.” Ultimately, I do think that we go much higher, but we may get the occasional short-term pullback which you should look at as a potential value play, that traders will take advantage of going forward. I have no interest in shorting this market, as I believe the Japanese yen has quite a bit of pain ahead just waiting to happen. Because of this, I do think that it’s impossible to short this market anytime soon, at least until the Bank of Japan changes its overall attitude and monetary policy, something that I just don’t see happening very easily anytime soon.
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This article was originally posted on FX Empire
