GBP/JPY Forecast – British Pound Pulls Back Against Japanese Yen

GBP/JPY Forecast Video for 14.12.22

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back against the Japanese yen as interest rates have dropped around the world. This helps the Japanese yen as the markets continue to see the Bank of Japan do everything it can to fight interest rates in the 10 year bonds. Because of this, as interest rates rise around the world, that works against the Japanese yen as the central bank will have to buy more bonds, thereby printing more currency. As rates fall, that helps the yen, because they will not be printing as much.

That being said, it’s also worth noting that the market is in an uptrend, and I don’t think that changes anytime soon. The ¥162.50 level is an area that has been important, so it’s not a huge surprise to see that’s basically where were hanging out. If we break down below there, then you have the 50-Day EMA near the ¥166.25 level, which is of course rising. Ultimately, this is a market that I think eventually we will see a little bit of a dip that people will take advantage of, and then go looking to the ¥170 level.

If we break above the ¥170 level, then the market should go back to the recent highs. On the downside, if we were to break down below the 50-Day EMA, then it’s possible that we could go looking to the ¥165 level underneath, where we have seen a lot of support recently. If you break down below there, then we could go looking to the 200-Day EMA underneath there near the ¥163 level, but that would take a massive amount of effort.

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