GBP/JPY Forecast Today 25/04: Builds Momentum (Chart)

(MENAFN- Daily Forex)

• On Thursday, we have seen the British pound dip slightly against the Japanese yen, only to turn around and show signs of life again.
• By doing so, the market looks as if it is trying to turn to the upside and perhaps continue the recovery that we have seen over the last several days.
• This suggests a little bit of a“risk on move” in the markets, and of course we have seen play out in the equity markets as well, so this is not a huge surprise.

The Bank of Japan can do very little to tighten monetary policy, so the interest rate differential will continue to be quite large between these 2 currencies. If that is going to be the case, then it makes sense that the British pound continues to see success against the Japanese yen. The pair is notorious for being very volatile, and if we suddenly get a lot of risk on behavior around the world, I think that bodes quite well for higher pricing.

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The technical analysis for this GBP/JPY pair is becoming more and more bullish each day, and the fact that we could not hang on to a selloff during the trading session tells me that this is a pair that is likely to continue higher given enough time. This doesn't necessarily mean that we need to be extraordinarily explosive to the upside, but I think it does suggest that we are going higher regardless.

EURUSD Chart by TradingView

Short-term pullbacks continue to look like they are being bought into, with the ¥188 level being a short-term support level, as we have seen the market take off from there. The fact that we are starting to show more aggressive momentum to the upside on short-term chart suggest that we have more distance to cover in this pair, and therefore I don't have any interest in trying to short this market, but I do think that it's only a matter of time before we try to reach that ¥192 level.

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