British Pound Pulls Back Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound initially rallied during the trading session on Wednesday to break above the ¥168 level, before pulling back to form a less than attractive candlestick. By doing so, it looks as if we are starting to see a bit of hesitation finally. That being said, I think there is plenty of support underneath, especially near the ¥165 level. The ¥165 level has been important in the past, and therefore it would make quite a bit of sense that it could offer support based upon “market memory.”

The market is a little of her stretched, but quite frankly you cannot go against the overall bullish attitude, so you need to be very cautious and simply wait for an opportunity to get long again. Pullbacks should offer plenty of value, and therefore I think stepping to the side for a short while might make quite a bit of sense, as you can simply join the overall long-term uptrend. After all, the Japanese yen has been broken on multiple fronts, so there is no reason to think that it will be any different here.

The Bank of Japan continues to fight higher yields in the bond market, essentially “printing unlimited yen.” They are stuck in a situation where they will either have higher yields or have to save their currency, as things stand at the moment, they cannot do both and it appears that they are more interested in bond yields than the yen itself. There will come a time when they have to go the other way, but as things stand at the moment, it seems like we are a long way from that being a major concern in Tokyo.

GBP/JPY Price Forecast Video 21.04.22

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