British Pound Continues to Break Higher Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound rallied significantly during the trading session on Monday to break above the ¥163 level. By doing so, it looks as if the market is doing everything it can to break higher, and continue to threaten the ¥165 level above, which is a major barrier to overcome. Ultimately, this is a market that is taking its cue from the Japanese yen, as it continues to get sold off against almost everything. Beyond that, this is a market that is also influenced quite drastically by risk appetite, so if risk appetite continues to climb for any reason whatsoever, is likely that people will pile into the upside again.

On the downside, the market is likely to see a lot of noisy behavior, especially near the ¥162.50 level, an area that has seen a little bit of short-term resistance. I anticipate that there would be buyers in that region, based on “market memory.” If we were to break down below the bottom of the candlestick for the trading session on Monday, then it is likely that we could go looking towards the ¥160 level underneath, an area that extends support down to the ¥159 level.

If we were to break out above the ¥165 level, that would be a huge barrier overcome, and a lot of traders would pay close attention to it. For what it is worth, the USD/JPY pair has already pierced a major barrier, and it is likely that this pair will follow right along. That being said, short-term pullback should be thought of as potential buying opportunities unless something changes quite drastically overall.

GBP/JPY Price Forecast Video 12.04.22

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