GBP/JPY Forecast Video for 14.03.23

British Pound vs Japanese Yen Technical Analysis

The British pound has gotten significantly sold off during the trading session on Monday, to reach down toward the ¥160 level. If we break down below the ¥160 level, then it’s likely that the market goes looking to the ¥157.50 level, where we had seen significant support previously.

Keep in mind that the market is very sensitive to risk appetite, and of course the interest rate market as the Bank of Japan continues to defend the 50 basis point level in the 10 year yield. Ultimately, I think this is a situation where you’ve got more noise than anything else, but the ¥160 level could offer a little bit of support.

All things being equal, the risk appetite has been all over the place as of late, and therefore you see a lot of choppy behavior in this market. To the upside, if we were to take out the ¥162.50 level, then it’s possible that we could go to the ¥165 level after that. Breaking above that level would open up the possibility of a move to the ¥167.50 level, where we had seen some selling pressure previously.

At this point, you will probably continue to see more back-and-forth behavior than anything else, and now that we have seen a very nasty candlestick on Monday, a lot of traders will probably start taking a look at the upside and try to return back to the same range that we have been chopping around for what seems like a lifetime, going back roughly a year. With this being the case, I’ll be looking for supportive candles that I can start buying but I will also be very patient.

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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