GBP/JPY Forecast Today 27/9: Breaks Higher (Chart)
Date
9/27/2024 4:39:31 AM
(MENAFN- Daily Forex)
During my daily analysis of the GBP/JPY pair, I noticed that we have broken above the crucial ¥194 level, and therefore I think we are getting ready to see a much bigger move. Short-term pullbacks of course are very well possible, but I think they will just be bought into as it offers a bit of value for traders to get involved with. In general, I think you have a situation where the carry trade is coming back into vogue, because even the US dollar is starting to rally a bit against the Japanese yen.
bank of England
The Bank of England recently chose to sit Pat with its monetary policy, and therefore it does make a certain amount of sense that we have seen the British pound truly take off. Because of this, the market is likely to continue to see a lot of volatility, but I think given enough time we can open up the possibility of a move to the ¥197 level. The ¥197 level is an area where we have seen a significant amount of noise in the past, so I think that makes a reasonable target. Nonetheless, I think short-term pullbacks will continue to offer quite a bit of support, so a short-term pullback offers the possibility of a“buy on the dip” scenario.
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The Bank of Japan has also decided not to raise rates again, so that means that the Japanese yen will probably continue to get sold off, and therefore I think we will eventually see the trading public in general continue to look at this as a market that you have to be a buyer of. I have no interest in shorting this market, at least not until we break significantly below the 50 Day EMA, and the 200 Day EMA indicators. Underneath there, we have the ¥190 level which I suspect is a major floor in this market overall. The market continues to see plenty of momentum, and therefore I think we continue to go higher.
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