British Pound Shows Potential Exhaustion Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound initially tried to rally against the Japanese yen during the session on Friday, reaching the ¥162.50 level before pulling back. At this point, the market looks as if it is trying to pull back to reach the ¥160 level, and if that is the case, it would more likely than not signify that we are going to have to work off some of the froth from the shot straight up in the air that got us here. This could also manifest into a bullish flag, but time will tell.

If we were to break above the ¥162.50 level, then it is possible that the market could go looking to the ¥165 level as a target. The ¥165 level is an area where we have seen a lot of resistance previously, where we had formed a massive shooting star from there. At this point, the market looks as if it is trying to figure out whether or not we can pick up enough momentum to go higher.

On the other hand, if we were to break down below the ¥160 level, then we would threaten the ¥159 level underneath. It is an entire support zone that has been holding this market, so if we were to break down below there, it opens up a waiver fresh selling that would almost certainly have the market reaching the ¥157.50 level, an area that previously has been massive resistance previously, and of course the 50 Day EMA is crossing that area right now. Ultimately, the market looks as if it is only a matter of time before the buyers jump in.

GBP/JPY Price Forecast Video 11.04.22

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