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GBP/JPY Forecast – British Pound Pierces ¥175

GBP/JPY Forecast Video for 12.06.23

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the trading session on Friday, breaking above the ¥175 level during the early American trading session. By doing so, it shows just how much bullish pressure there is, and the fact that we are in fact trying to clear the ¥175 level and keep going shows just how bullish this market is. The ¥175 level of course is a large, round, psychologically significant figure in an area that recently had been a major swing high. Because of this, I think we got a situation where the market is going to continue to go much higher, and if we can stay above the ¥175 level, you have to ask the question of whether or not this becomes a “buy-and-hold” type of market.

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Underneath, I see a lot of support at multiple places, not the least of them would be the ¥172.50 level. The ¥172.50 level is an area that a lot of people will be paying close attention to due to the fact that we have seen quite a bit of support in that area, and with that being the case, I think you get a situation where traders will be more than willing to pick up bits and pieces of value on a pullback.

On the other hand, if we do just simply go straight up in the air, the next major target will be the ¥177.50 level. After that, then you’d be looking at the ¥180 level, something that would be a major move indeed. I would not expect the market to get up there overnight, but I do think that it could be more or less a grind higher than anything else, so therefore you have to be cautious about getting too aggressive at this point.

All things being equal, I do like the upside in this pair, so now it’s just a matter of whether or not you bite on a pullback or just simply hang onto it. I think either way you would be rewarded, but obviously getting into the position right away with too big of a trade could give you a bit of trouble if you aren’t careful.

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

This article was originally posted on FX Empire

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