DailyBubble News
DailyBubble News

GBP/JPY Forecast Today – 14/05: Rally (Chart)

The British pound showed strength in trading on Monday, rallying once again. The pair is well above the ¥195 level, which is a significant psychological point. A few weeks ago, it broke above an inverted hammer, signaling a bullish trend.

Despite recent interventions by the Bank of Japan, the Japanese yen remains weak. The interest rate differential between most currencies and the yen is wide, and Japan’s high levels of debt prevent strong interest rates. The Japanese government can only intervene occasionally to slow down the decline of their currency.

This market is seen as a “buy on the dips” opportunity, with the 50-Day EMA providing solid support. The ¥190 level also offers support. The next target is likely the ¥200 level, which may face resistance due to previous interventions by the Bank of Japan. However, this level is expected to eventually be surpassed.

Shorting any yen-denominated pair is not recommended due to high costs. Japan faces significant challenges, and it is uncertain what measures can be taken to address them.

For those interested in trading based on daily Forex forecasts, it is recommended to explore the best forex broker UK reviews.

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