GBP/JPY Forecast Video for 25.09.23
British Pound vs Japanese Yen Technical Analysis
The British pound has initially tried to rally during the course of the trading session on Friday but gave back gains rather quickly as we continue to see the British pound struggle. With this, it makes a certain amount of sense that we would see this pair drop, but it’s also worth noting that the Bank of Japan chose not to do anything overnight, therefore it’s likely that we will continue to see Japanese Yen weakness over the longer term.
The 50-Day EMA sits at the top of the candlestick on Thursday, so therefore it’s likely that we continue to struggle in general, but if we were to break above the 50-Day EMA, it’s likely that the market would turn around and continue to go much higher. At this point, it would continue the longer term uptrend, and therefore you would continue to see the interest rate differential cause headaches for the Bank of Japan and of course those who are bullish on the yen itself.
Underneath, I see the ¥180 level at a major support level, and therefore think a lot of people will be paying close attention to it, and therefore if we were to break down below there, we can see this market really fall apart. At that point, the market could drop all the way down to the ¥175 level rather quickly. All things being equal, the market continues to see a lot of volatility and I think that gives you plenty of opportunities if you are waiting for some type of value. I don’t necessarily think that the market changes the overall trend anytime soon, but it does look like we have plenty of reasons to think that the markets will be volatile and therefore you have to be cautious with the position sizing, but I do think that eventually you get a nice opportunity to buy the British pound against a very weak Japanese yen. However, be cautious and take your time.
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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