British Pound Rallies From the ¥160 Level

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Friday to show signs of life as we have bounced from the ¥160 level. By doing so, the market is very likely to continue to see a lot of back and forth short-term action, but it should not be forgotten that the market is most certainly in an uptrend, which has quite a bit of momentum behind it if you look at longer-term charts.

When you look at this chart, you can see that there is a significant amount of support between ¥160 and ¥159. Breaking through that would of course be a very negative turn of events and could attract a lot of attention. At that point, I would short this market and go looking towards the ¥157.50 level. However, as we are in an uptrend it is much easier to buy a market that suddenly shows more upward strength again. That is generally what happens with parabolic moves, but it is also worth noting that the yen is banging up against major resistance in several pairs from longer-term charts simultaneously. In other words, there is a threat of this market rolling over and perhaps showing signs of hesitation.

Looking at this chart, it is most certainly bullish at the moment, and it is possible that we get a bit of sideways action more than anything else over the next couple of weeks. Quite frankly, that would be the most bullish thing that you can see, as it would mean that the market is coming much more comfortable at these elevated levels.

GBP/JPY Price Forecast Video 04.04.22

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