GBP/JPY Forecast Video for 31.07.23
British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has fallen during the week, especially on Friday when the Bank of Japan announced that it was losing its yield curve control. That being said, the market is turned right back around to show signs of strength again, and the massive hammer that forms for the week suggests that there are plenty of buyers willing to jump in. All things being equal, this is a market that I think given enough time will continue to go toward the highs, perhaps even try to break out to the upside even further. The ¥185 level is a major resistance barrier, and opens up a longer-term “buy-and-hold” type of situation.
All things being equal, I anticipate seeing a lot of noisy behavior, and I think that we’ve got a situation where you are probably looking to buy dips, as they occur from time to time. However, you probably need to do it on shorter-term charts, using the weekly chart as a bit of a guidepost as to where we are going next. Either way, this is a market that has shown just how more resilient the British pound is than any type of fear coming out of the Bank of Japan stating something. The interest rate differential opens up a massive opportunity for those willing to hang onto the trade, so therefore I think we will continue to see buyers jump into this market and take advantage of value every time it appears. I have no interest in shorting it, but if we broke down below the ¥175 level, then you can make an argument for something a little bit deeper.
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This article was originally posted on FX Empire
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