GBP/JPY is on track for higher moves, supported by rate differentials. Currently holding steady at ¥191, with a potential dip to the ¥189 EMA. The long-term outlook remains bullish, with a target of ¥195. The Bank of Japan is unlikely to raise rates further, making this pair attractive for holding.
The British pound has been fluctuating around the ¥191 level in Friday’s trading session. The market is showing upward momentum in the long run, driven by a wide interest rate differential. Any pullback is likely to find support near the 50-Day EMA around ¥189, as buyers are expected to step in. With the Bank of Japan’s interest rates at a minimal 0.1%, the trend for GBP/JPY is likely to continue upwards.
Buying on the dips is a strategy to consider for yen-related pairs, including GBP/JPY. The pound’s potential rise against the US dollar could further boost this pair. The prospect of reaching the ¥195 level is in sight, representing a significant milestone. Shorting the market is not advisable, given the attractive interest rates offered for holding the yen.
In conclusion, GBP/JPY is positioned for further gains, with a target set at ¥195. The interest rate differentials between the British pound and Japanese yen make this pair appealing for longer-term trades. Stay updated on brokers for the latest information in the forex market.