British Pound Continues to Hover Around ¥160 Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Thursday against the Japanese yen, as we continue to hover about the ¥160 level. This is a relatively bullish sign in the sense that we at least are not pulling back drastically, but it should be noted that the hammer from the Wednesday candlestick being broken to the downside would be rather negative if it does in fact happen.

Alternately, if we can break above the highs of the Thursday candlestick, that could drive this pair to look towards the ¥162 level again. Obviously, we need some type of momentum to make that happen, especially as we are so overbought at the moment. With this in mind, I believe that traders will look towards the jobs number on Friday for some type of indication as to whether or not they should be bearish or bullish on financial markets overall, and then trade accordingly.

If the market does break down, the ¥157.50 area is a likely candidate to see buyers coming into pick the market up. If they were to do so, then it might be a nice “buy on the pullback” type of play. If we break down below the 50 Day EMA, a more severe correction could be in the cards and therefore we could fall quite drastically. That being said, shorting this market is going to be very difficult and only for those who have an iron stomach, as it will certainly be a volatile and messy ride on the way down, even if it does work.

GBP/JPY Price Forecast Video 01.04.22

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