GBP/JPY Forecast – British Pound Recovers During Monday session Against Yen

GBP/JPY Forecast Video for 17.10.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Monday, as we continue to see a lot of noisy behavior. The 50-Day EMA is an area where I think a lot of people will be paying attention to, and if we can break above there, then the market could open up the possibility of a move toward the ¥184 level. If we can break above that level, then the ¥185 level is your next target.

Underneath, the ¥180 level is an area where you would see a lot of support, and an area where we had bounced from. With this, the market is likely to continue to see a lot of noisy behavior, and I think it’s probably only a matter of time before we see the market try to turn around and rally from a fall. Furthermore, you need to keep in mind that the Bank of Japan keeps its interest rates extraordinarily low, and that will of course continue to be a big deal as well. As long as the Bank of Japan tries to keep its interest rates as low as they are, the Japanese yen will be one of the least favorite currencies by traders to own.

With the massive interest rate differential, you get paid to hang on to this pair, and I think that will end up being one of the major drivers of where we go next. In other words, it just makes more sense to own the British pound and it does the Japanese yen. Dips continue to be buying opportunities, and I don’t think that changes anytime soon. Yes, the 50-Day EMA is in this general vicinity, but at the end of the day, I don’t know how much it means. I do think that interest rate differential continues to drive where the markets are going, and it is probably only a matter of time before we break to fresh, new highs. Having said that, if we were to take out the recent swing low, that would of course be a very negative turn of events, perhaps sending this market down to the 200-Day EMA.

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This article was originally posted on FX Empire

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