GBP/JPY Forecast – British Pound Gives Up Some Early Gains Against Yen

GBP/JPY Forecast Video for 28.11.22

British Pound vs Japanese Yen Technical Analysis

The British pound has tried to rally during the trading session on Friday and did in fact hang on to some of the gains. That being said, the market is likely to continue seeing a lot of volatility in this area, as it is the scene of a major peak. Even if we do pullback, that doesn’t necessarily mean that anything is changed from a longer-term standpoint, just that we may need to pullback in order to build up momentum. Keep in mind that the Japanese yen continues to be a bit of a punching bag for almost all currencies, as the Bank of Japan continues to print unlimited yen.

Looking at this chart, I think the ¥167.50 level offers support, just as the 50-Day EMA does down at the ¥166 level. After that, then you have the ¥165 level which is an area that has seen action previously. On the upside, you will have to worry about the ¥170 level, as it is a large, round, psychologically significant figure, and an area we had pullback from quite drastically in the last couple of weeks. Either way, this is a market that probably continues to go higher but there are a lot of issues with the British pound itself, so it’s not a simple matter of just shorting the yen.

I still believe that most other yen related pairs will do the same as they have been doing, but they may do much better than this particular one because they don’t come with the baggage that the British pound does. Either way, I’m not a seller of this pair anytime soon.

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