Category: Forex News, News

GBP/JPY Forecast – 12/06: Continues to Press? (Video)

By Published On: June 12, 20242 min readViews: 1290 Comments on GBP/JPY Forecast – 12/06: Continues to Press? (Video)

  • The British pound initially rallied during the trading session on Tuesday to break above the crucial ¥200 level, but it has also given back some of those gains as it shows that we are going to have quite a bit of noise in this market.

That being said, I think this is a situation where market participants continue to push to the upside, and I look at dips as buying opportunities.

After all, the interest rate differential is wide enough to drive a truck through and I think ultimately this is a market that will try to break to a fresh new high, perhaps overcoming the ¥201 level.

In the meantime, we may get a short term pullback, but I think that is something that you should take advantage of. The latest swing high, shows that the market is trying to do everything it can to get beyond the Bank of Japan intervention. But the latest swing low down at the ¥197.50 level is an area that previously had been resistant, so it’s already proven to have people willing to jump into it.

Remember, you get paid at the end of every day to hang on to this position, and that’s something that does matter to institutional traders and therefore the so-called big money. I believe that the 50 day EMA near the 196.25 level will continue to be supportive as well. So, I see so many support levels underneath that. I think it’s probably only a matter of time before value hunters jump in.

Keep in mind that Friday is a Bank of Japan meeting, but really, there’s only so much they can do because quite frankly, Japan has far too much debt to finance it at higher levels. Because of this, I remain bullish for the longer-term, and I do believe that it is only a matter of time before we break through the recent high and continue to go even higher. I have no interest in selling this pair, and I believe that ultimately the British pound will continue to pummel the Japanese yen, although the “easy money” has already been made.

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