GBP/JPY Forecast – British Pound Noisy Against the Japanese Yen

GBP/JPY Forecast Video for 30.11.22

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Tuesday, as we hang around the 50-Day EMA. The ¥165 level underneath should continue to be of interest, and therefore I think it’s a situation where we like the idea of paying close attention to that region, because it is very psychologically and structurally important as potential support. After that, then you have the 200-Day EMA sits at the ¥162.50 level and could offer significant support yet again.

On the upside, if we take out the top of the candlestick for the trading session on Tuesday, we almost certainly will go looking to reach the ¥167.50 level, and then maybe the ¥168.50 level, where we had pulled back from over the last several sessions. Regardless, keep in mind that this pair is highly sensitive to risk appetite, as in times of fear it does tend to fall. However, the Bank of Japan continues to print unlimited yen in order to buy unlimited bonds, so that does keep this market somewhat buoyant due to the fact that the yen itself is so toxic.

On the other side of the equation, you need to keep in mind that the British pound has a lot of issues in and of itself, so I do think that this pair continues to be a bit of an underperformer when it comes to yen related pairs. While I would not necessarily short this market, I don’t like buying this pair as much as other yen related pairs when the Japanese yen falls such as the NZD/JPY as an example. Ultimately, choppiness should be expected.

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