Superior broker technology provider since 2010
+1 (315) 675 1086 |

Continues to See Resistance Just Above

The pair continues to exhibit considerable volatility, but overall, there is a long-term upward momentum. 

  • The GBP/JPY has shown signs of rallying during the early hours of Monday, continuing its move above the significant ¥175 level against the Japanese yen.
  • However, the market appears to be encountering substantial resistance, suggesting that the British pound may be losing some of its momentum against the yen.
  • Despite this, there is considerable support underneath, which could potentially attract buyers looking for value in the market. The ¥175 level is a notable round figure that many will be watching closely, as it has previously served as a strong resistance point. A break above the top of Monday’s candlestick would be a bullish indicator.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker


On the downside, the ¥172.50 level is seen as a potential support area. A significant drop would likely make this the first major buying area. Further below, the ¥170 level, where the 50-Day Exponential Moving Average (EMA) has just crossed, could also serve as a support level. It’s worth noting that a minor support level near the ¥171.50 mark could also come into play.

The pair continues to exhibit considerable volatility, but overall, there is a long-term upward momentum. Essentially, the strategy is to find “cheap pounds” and capitalize on the structural weakness of the Japanese yen. The Bank of Japan’s meeting on Friday could also influence the market, although they have already indicated that it is unlikely, they will make any changes to monetary policy. If the BoJ were to change, obviously this would be the biggest mover of this market.

The interest-rate differential situation continues to favor holding onto this currency pair. The swap continues to pay, making it less likely for traders to abandon this pair. Ultimately, the market could aim for the ¥177.50 level. However, traders should avoid overexposure to any single currency pair at this time, given the number of central bank meetings scheduled for this week. This will continue to be a major influence over the next several days.

In conclusion, the British pound’s rally against the yen is set against a backdrop of significant resistance and upcoming central bank meetings. Traders are advised to tread carefully, keeping an eye on key support and resistance levels, and the potential impact of central bank decisions. Despite the current volatility, the long-term upward momentum and interest-rate differential situation provide compelling reasons for continued investment in this currency pair.


Ready to trade our Forex daily forecast? We’ve shortlisted the best regulated forex brokers UK  in the industry for you.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.