British Pound Continues Higher Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied after initially dipping during the trading session on Tuesday, only to turn around and reach the ¥161.50 level. That being said, the market is likely to see a lot of buying opportunities, as the market has been very well supported near the ¥160 level. That fact suggests that the market is going to make a serious attempt to the upside yet again, but there is a massive amount of resistance above, as it is a major resistance barrier on longer-term charts.

The ¥160 level underneath continues to be a major support level, and as long as we can stay above there one would have to assume that the overall health of the market is still rather strong, and that the uptrend is very much intact. With this being the case, the market is likely to continue to show more of a “buy on the dips” type of attitude. Keep in mind that this pair is highly sensitive to the risk appetite of traders around the world, as the Japanese yen is considered to be a safe currency. Beyond that, the Bank of Japan has been forced to drive down interest rates in that country, meaning that it is going into a cycle of quantitative easing while other banks around the world are doing the exact opposite.

At this point, it is not until we break down below the ¥159 level that you would have to be cautious, and even then, I think that there is a major support level near the ¥157.50 level, as it was previous resistance that was so obvious on the charts.

GBP/JPY Technical Analysis Video 06.04.22

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