GBP/JPY Forecast Video for 05.06.23
British Pound vs Japanese Yen Weekly Technical Analysis
The British pound initially fell during the course of the trading week, but then turned around to show signs of life yet again. By doing so, it looks as if the market is going to continue to see a lot of upward momentum, and with that being the case I think it’s probably only a matter of time before we see value hunters coming back into the market.
That being said, it’s probably worth noting that the market is a little stretched at this point, so I do think that you have to pay close attention to multiple support levels underneath, with special attention being paid to the ¥172 level as it is significant support. If we break down below there, then it’s possible that we could go down to the ¥170 level. The ¥170 level is a large, round, psychologically significant figure that a lot of people would look to get involved in, as it was a major breakout.
On the other hand, if we were to turn around and break out above the ¥175 level, then I think the British pound could go all the way to the ¥177 level next. Longer term, I do think that the British pound could go as high as ¥200, but obviously it won’t get there very quickly. Ultimately, we are little stretched, so the occasional pullback will obviously have an effect on this market, but the Bank of Japan is certainly going to be a major factor in this market as well, as the yield curve control issues continue to be a major problem for this market, as the Japanese yen continues to take a lot of beating due to it.
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This article was originally posted on FX Empire