GBP/JPY Forecast Video for 04.10.23
British Pound vs Japanese Yen Technical Analysis
The British pound has shown itself to be resilient during the trading session early on Tuesday, as we initially fell, but then recovered quite nicely against the Japanese yen. Whether or not we can continue to go higher remains to be seen, but at this point the ¥180 level is a major support level that I think a lot of people will pay close attention to.
The market could rally to the 50-Day EMA near the ¥182.50 level, where we would see a significant amount of resistance. Breaking above that area would obviously be very bullish, but at this point in time we have to see whether or not we have enough momentum to actually make that happen. With that being the case, I think a little bit of hesitation and caution could be warranted, but it certainly looks as if we are in an area where you would anticipate a certain amount of push.
Breaking below the ¥180 level would of course be very negative as well, and that opens up the door to the ¥177.50 level, an area that recently has been supported against a major selloff. At this point, the British pound is not necessarily a currency that I’m overly enamored with, but at the same time the Japanese yen is even worse, so that does make a certain amount of sense that we would see this market eventually find buyers.
That being said, it’s probably one of my least favorite yen related pairs at the moment, and it’s also possible that we need to consolidate in this general vicinity in order to work off some of the selling pressure that we had previously seen, and then of course it would make a certain amount of sense that we would have to build up a little bit of confidence in this area.
Once that confidence builds up, then it’s possible that we see a continuation of the potential recovery. Furthermore, you can keep an eye on the USD/JPY pair, as it will give you an idea of what is going on with the Japanese yen. It is currently threatening the ¥150 level, which obviously has a lot of psychology attached to it. If that pair can break well above there, it will probably drag this one up with it.
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This article was originally posted on FX Empire
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