GBP/JPY Forecast Video for 11.09.23

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied rather significantly during the course of the week, but gave back quite a bit of the gains yet again as we continue to see the ¥185 level offer a barrier. Because of this, I think you get a situation where we need to be very cognizant of the lack of momentum above there, but if we were to break above the numerous weekly candlesticks that have huge wicks to the upside, this is a market that can truly take off. At that point, I would anticipate that the British pound goes looking to the ¥200 level.

On pullbacks, the British pound continues to be a currency that I want to own, and therefore I have no interest in shorting, especially against the Japanese yen as the Bank of Japan continues to keep interest rates extremely low. As long as that is going to be the case, there’s no real argument for shorting this market, and therefore you have to look at every dip as value and a potential buying opportunity.

At this point, I look at the ¥180 level as the “floor in the market”, as the market has shown it to be so important in the past. Alternatively, I have no interest in shorting this pair, and I think that we have a scenario where no matter what, you are either going long of this market or you are just simply sitting on the sidelines waiting for another buying opportunity. I just don’t see how you can get short of this market without the Bank of Japan doing a complete 180° turn in its attitude.

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This article was originally posted on FX Empire

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