British Pound Stabilizing Against the Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen initially during the trading session on Wednesday to pierce the ¥160 level, an area that of course would attract a lot of attention. Ultimately, this is a market that has been important previously, so now that we have broken through there only to show buyers it does suggest that we could see a little bit of stabilization, but it also sets up a potential selling signal.

If we were to break down below the candlestick for the trading session on Wednesday, that would be a very negative turn of events, perhaps opening up the possibility of a selloff towards the ¥157.50 level. That is an area that has been resistance more than once, and therefore it is likely that we would see a little bit of “market memory” in that area. Ultimately, this is a market that I think is a little overdone, but now the question is whether or not we are going to go sideways, or if we are going to pull back to build up the necessary momentum? That is the only thing that matters in this market, because quite frankly fundamentals are thrown out the window although a lot of what is going on involves the JGB markets and the fact that Japan is not defending them.

Rallies at this point in time would suffer at the hands of plenty of noise, but we also have to worry about a lot of risks out there, and therefore this will continue to be a very noisy market to say the least.

GBP/JPY Price Forecast Video 31.03.22

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