British Pound Pulls Back Against the Japanese Yen for the Week

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has fallen hard during the course of the week to reach the ¥160 level, an area that has been supported more than once. If we were to break down below there, then it is likely that we could go down to the ¥158 level. Any sign of support on short-term charts will probably be jumped upon, as the market would be likely to go looking to the ¥162.50 level, maybe even the ¥165 level.

Keep in mind that this pair is highly sensitive to the risk appetite of markets in general, so pay attention to stock markets, commodities, and the like to get an idea as to how things play out. That being said, there is still plenty of support underneath, so I think it is probably only a matter of time before we see buyers coming back into this market. In this general vicinity, I would anticipate a lot of volatility, but we are getting rather close to a major support level so that is worth paying attention to.

The 50 Week EMA sits just below the ¥155 level, and I think that will be the “floor in the trend” as we continue to see it offer dynamic support. Ultimately, this is a market that will continue to focus on the Bank of Japan and its battle to keep interest rates down. That being said, the British pound is especially vulnerable, due to the Bank of England recently suggesting that it is only a matter of time before the UK ends in a recession, and therefore it makes sense that the pound is getting crushed.

GBP/JPY Price Forecast Video 09.05.22

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