Yahoo Finance GBP/JPY Forecast – British Pound Recovers After Initial Selloff Against Yen
GBP/JPY Forecast Video for 04.04.23
British Pound vs Japanese Yen Technical Analysis
The British pound initially fell during the trading session on Monday, but then turned around to show signs of life again. By doing so, it looks as if we are going to continue to threaten the overhead resistance, as this pair has been extraordinarily bullish over the last several sessions, and therefore I think you continue to see a little bit of momentum. However, you can clearly see that somewhere near the ¥166 level there has been a lot of selling pressure. We have formed a little bit of a double top there, so now we have to determine whether or not we can break above that level again.
If we do pull back, that would not be a huge surprise, as we have seen a lot of choppy and noisy behavior. Furthermore, you can also make an argument for a bit of an up trending channel, as we are clearly in an area that has been defined fairly well. The 50-Day EMA is trying to cross above the 200-Day EMA, but the moving averages are somewhat flat, so I don’t necessarily put a lot of stock into that signal. That being said, it could end up being a nice little support level, so it makes for a target if we break down below the bottom of the candlestick for the Monday session.
If we do break to the upside, then it’s possible that we could go looking toward the ¥169 level bone, which was an area that we had seen a lot of selling pressure and supply from there. Regardless, this is a market that I think will continue to be noisy, so by all means you should be very cautious with your position sizing. In general, this is a market that I think continues offer plenty of short-term trading, but as we are closer to the top of the range, it does make a certain amount of sense that we would see selling pressure given enough time. All things being equal, I think the only thing you can do is be cautious and make sure that you monitor your position very closely.
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This article was originally posted on FX Empire
