GBP/JPY Forecast: Continues to See Buyers on Dips – 28 February 2023
Overall, the outlook for the British pound is positive, and traders should be prepared for more bullish momentum soon.
During Monday’s trading session, the GBP/JPY initially pulled back slightly, but the market turned around and showed strength once again, indicating that it’s only a matter of time before the market breaks above the highs of last week and heads towards the ?165 level. This level was previously supported, which highlights the idea of “market memory” where support becomes resistance and vice versa.
The yen is a popular asset during turbulent times.
Breaking above the ?162.50 level was a bullish sign previously, and now that the market has retested the area for support, it is likely that buyers will continue to jump into the market. While the ?165 level will be significant, it is not impossible to overcome. A massive negative candlestick broke through that level during the time when the Bank of Japan announced that it was going to allow the 10-year JGB yield to rise to 50 basis points. However, since then, the Bank of Japan has shown no interest in expanding that range, and the Japanese yen will continue to suffer in general.
At the same time, members of the Bank of England have suggested that rates will need to continue to rise, which has created excitement in one direction.As a result, it looks like the market will continue to be a “buy on the dips” scenario, making it a market that is not worth shorting anytime soon.The breakout seems to be picking up momentum, and it’s likely that the trend will continue in the short term.
Overall, the outlook for the British pound is positive, and traders should be prepared for more bullish momentum soon. The Bank of England’s comments on interest rates have given the currency a boost, and it’s likely that the market will continue to be a “buy on the dips” scenario if this trend continues. However, traders should keep an eye on the ?165 level, as it could provide significant resistance. Nevertheless, the trend seems to be picking up momentum, and it’s likely that the market will continue to move higher in the short term. Over the longer term, it will be interesting to see just how much momentum we can hold in this market, and whether we can take out that nasty negative candlestick that sent us down to the previous consolidation area to begin with.
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