GBP/JPY Forecast Video for 23.03.23
British Pound vs Japanese Yen Technical Analysis
The British pound has rallied significantly during the trading session on Wednesday as the market has been in a significant range for a while, so now it looks like we are trying to get to the top of it again. That would be the ¥165 region, where we had sold off from a couple of times. The market has also seen a lot of support near the ¥160 level, an area where we had seen several attempts to break down below there. However, we have not been able to close below there, and it suggests that the buyers are waiting to get involved every time we get down there.
All things being equal, this is a market that I think stays in this overall range, so therefore I think it’s a situation where we have the noise playing out quite drastically in this market, and therefore I think you have a situation where you are looking for range bound opportunities, perhaps using something along the lines of the Stochastic Oscillator, or other such range bound indicators.
It’s worth noting that the market has been very sideways for a very long time, and it seems like we are just moving from one range bound area to another. With this being the case, it’s not overly surprising that we are just simply grinding back and forth. Despite the fact that the candlestick was very strong during the trading session, the reality is that we have seen these impulsive candlesticks previously. In other words, I don’t necessarily think that we are going to break out of the overall range, so I believe sooner or later we will probably see some exhaustion. However, if we take out the ¥165 level on a daily close, that it’s very possible we could go to the ¥167.50 level.
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This article was originally posted on FX Empire
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