GBP/JPY Forecast Video for 03.07.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied a bit during the course of the trading week, as we continue to see a lot of upward pressure due to the Bank of Japan and its ultra-loose monetary policy. With that being said, I think you’ve got a situation where the market is eventually going to continue going higher, and that every time we pull back it should be thought of as a potential buying opportunity. The ¥180 level is an area that will offer a significant amount of support, and therefore I think we have the possibility of a “buy on the dip” move rather soon. If we can break above the ¥185 level, then the market is likely to go much higher, perhaps reaching the ¥200 level by the end of the year.

That being said, we are a little bit overdone at this point, so a short-term pullback makes more sense than anything else. That doesn’t mean we have to pull back, just that it does make a certain amount of sense as we have a pullback in order to offer a bit of value. This is especially true if we can get near the ¥180 level, as it has been so important recently. After the most recent shot higher, the market looks like it is a little overstretched at this point, so we need to be very cognizant of the fact that it is probably only a matter of time. Nonetheless, I have no interest in shorting this market, it is far too bullish for me to try to fight. Looking for value will continue to be the way I trade this market going forward.

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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