British Pound Continues to Consolidate Against the Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied ever so slightly against the Japanese yen during trading on Monday, but remains range bound in consolidation, perhaps trying to work off some of the excess froth in a market that has gone straight up in the air recently. Because of this, I think the market continues to hang around the ¥160 level, an area that would cause a certain amount of psychology to come into play.

Whether or not we go sideways or break down remains to be seen, but if a break down below the ¥159 level happens, it does open up the possibility of a 250 PIP drop to the ¥157.50 level. Above current levels, we have spiked all the way to the ¥165 region, but you will notice we pulled back from that area quite rapidly. This tells me that there is probably still a lot of resistance above, so I do not like the idea of going long at this point and simply hoping that we smash through this major barrier.

The most bullish thing that I think it happened at this point in time would be for the market to simply grind away to the side and work off some of the excess froth that had been seen in the run-up to this level. Simply becoming comfortable would be a major victory in itself from a psychological standpoint. Ultimately, this is a market that does tend to move on risk appetite, so pay attention to whether or not traders are willing to put money to work in other markets. If they are not, this pair more likely than not will struggle. On the other hand, it is a great currency pair to be long of when times are good.

GBP/JPY Technical Analysis Video 05.04.22

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