GBP/JPY Weekly Forecast – British Pound Gives Up Early Gains for the Week
GBP/JPY Forecast Video for 20.11.23
British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has initially shot higher during the course of the week but gave back quite a bit of the gains as we continue to see a lot of volatility. With this being the case, the market looks as if it is going to find buyers on short-term dips, which is essentially what we are seeing on Friday after a selloff overnight. The market continues to see a lot of volatility, but I think at the same time, the interest rate differential will continue to be very influential in this pair, favoring the British pound as the Bank of Japan has such loose monetary policy.
Underneath, I see the ¥185 level as a support level, but even if we break down below that level, there is plenty of support all the way down to the ¥181 level. The ¥181 level underneath has offered support multiple times, so I do think that a lot of value hunters would be interested in the market at that point.
It’s probably worth noting that part of the pullback had happened on Friday morning as Bank of Japan Gov. Ueda started jawboning the market down again, but he’s essentially speaking nonsense, as the Bank of Japan has no real way to deal with the debt and higher interest rates at the same time. Because of this, I think it’s probably only a matter of time before we continue to go higher, despite the fact that we are forming an exhaustion candle. Looking for pullbacks and short-term buying opportunities may help longer term traders fine-tune their entries.
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This article was originally posted on FX Empire
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