GBP/JPY Forecast Today 14/10: Tests Key Level (Video)
Date
10/14/2024 2:39:03 PM
(MENAFN- Daily Forex)
The British pound has rallied a bit against the Japanese yen during the trading session on Friday as we continue to threaten the 195 yen level, an area that's been important a couple of times in the past. So, I think ultimately, we need to see whether or not this pair can actually stick above the 195 yen level to get overly bullish in the short term. It looks like every time we dip a bit, buyers are willing to step in and pick up a little bit of value as it appears.
But really at this point in time, I think it is a little bit difficult to get overly aggressive at least until we clear this hurdle. That being said, if we do break above that hurdle, I think a lot of people will be paying close attention to this pair. I also believe it would have more to do with the Japanese yen than anything else as you would more likely than not see other yen related pairs skyrocketing.
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If and when we do, then the market could very well run up to the 198 yen level, an area that has been important previously. With all of that being said, I think we have a situation where traders continue to see the potential for the carry trade to come back. This is especially true now that the Bank of Japan has finally come out recently and just admitted that, hey, there's nothing we can do here as far as tightening monetary policy is concerned. So, with that being said, I think you have a situation where you're buying dips and if we can finally get that move above 195 with a clean break to the upside, you start to chase that as well. I have no interest whatsoever in shorting this pair. The interest rate differential will continue to keep me long of this market going forward as I get paid at the end of every day.
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