GBP/JPY Forecast – British Pound Continues to Rally Against Yen
GBP/JPY Forecast Video for 24.11.22
British Pound vs Japanese Yen Technical Analysis
The British pound has rallied significantly during the session on Wednesday, as we have reached the ¥169 level. This is an area that had previously been resistance, so it does make a certain amount of sense that we have reached that level again. If we can break above here, then it’s likely that we could go looking to the ¥170 level again.
If we do pullback from here, it should be a nice buying opportunity as there is quite a bit of buying pressure underneath, especially near the ¥167.50 level. Below there, then we have the 50-Day EMA that is rising and should offer a certain amount of support. All things being equal, this is a market that will continue to punish the yen for the massive money printing that the Bank of Japan has been doing. If the British pound continues to recover in general, that only adds more pressure to this market.
That being said, there are plenty of problems in the United Kingdom, so it is worth noting that the British pound may prove to be somewhat toxic as a result. In other words, it is very possible that this pair may end up underperforming some other yen related pairs, as it’s not as clean of a play as something like the USD/JPY pair, or the CAD/JPY pair.
Either way, the Japanese yen is not the currency you want to own right now, but if the Bank of Japan announces that they are going to let rates float freely in the bond market, the Japanese yen will be way stronger than it is right now, and that would send this market plummeting.
For a look at all of today’s economic events, check out our economic calendar.