GBP/JPY Forecast: Bullish Pressure And Buy Dips

By Christopher Lewis of DailyForex

Forex Trader • Jul 1, 2024 at 6:17 AM EDT

In today’s GBP/JPY analysis we continue to see a lot of bullish pressure on each dip, and I think that it is only a matter of time before buyers come in and pick this market up.

Swap Matters

As we get paid at the end of every day to hang on to it. If we pull back from here, the ¥200 level, of course, is an area that a lot of people will be paying attention to unless it was previous resistance and now based on market memory should be supported. The 50 day EMA is racing towards the ¥200 level as well, so that all comes together to offer a significant opportunity if we do get down there.

On the other hand, we could just continue to go higher. That would make a certain amount of sense as well. But we are overbought at this point. You do have to be cautious with this type of stretched out GBP/JPY market. With that being said, I like the idea of buying short term dips as a value proposition. I don't have any interest in shorting this market.

I certainly wouldn't want to pay the swap at the end of every day for that. privilege. So really, at this point, I don't see much keeping this pair from going to the ¥205 level, other than we might be a little stretch, but I think any pullback gets bought into rather quickly. That gives you an opportunity to chase what is obviously a very strong upside. That swap at the end of every day cannot be overstated. I think continues to be one of the main drivers of where we go next.

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