British Pound Continues to Power Higher Against the Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied during the trading session on Friday to reach the ¥162 level, an area that has been a little bit of resistance previously. At this point, the question is whether or not we are going to have to go sideways a bit before breaking out, or are we trying to form some type of topping pattern? I think the jury is still out at the moment, but the Bank of Japan flooding the market with yen certainly favors the British pound in this scenario. Because of this, I think this is a market that will eventually have to come to terms with the bigger move.

If we break down below the ¥159 level, then it is likely that we will look to the ¥157.50 level as the next potential buying opportunity. That is an area that previously had been massive resistance previously, and therefore it is worth noting that there should be a certain amount of “market memory” involved and therefore one would anticipate a lot of noise. Breaking down below that level could kill the entire uptrend, especially if the Bank of Japan quits with the printing.

This pair is also highly sensitive to risk appetite, so you should keep that in mind as well, simply due to the fact that the markets will continue to see a lot of volatility. Volatility can cause a major problem at times, and quite often will have traders running for the hills. If that is going to be the case, it is likely that the Japanese yen may end up attracting inflows. That being said, the market is likely to continue to be noisy, and is not showing any signs of breaking down.

GBP/JPY Price Forecast Video 07.04.22

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