GBP/JPY Forecast – British Pound Slams Into Resistance

GBP/JPY Forecast Video for 08.12.22

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Wednesday to reach the ¥167.50 level. This is an area that has been important more than once, and now it looks like it is offering significant resistance. After all, we ended up forming a bit of a shooting star during the Tuesday session, and we have tested the top of the candlestick during Wednesday.

At the ¥165 level underneath begins significant support, so that might be where we go to, where I would expect to see buyers. Breaking down below the ¥163.50 level then opens up even more selling pressure. On the upside, if we break above the ¥167.50 level, then we could have a move to the ¥168.50 level. Anything above there then allows the market to go looking to the ¥170 level.

Keep in mind that this pair is highly sensitive to risk appetite in general, so therefore we need to pay attention to how the world is trading as well. While the Bank of Japan continues to fight interest rates, if interest rates start to drop that could give the yen a little bit of a boost, meaning that this pair might underperform in that scenario. On the other hand, it’s probably easier to trade other yen related pairs due to the fact that the British pound has a whole litany of issues that follow it around. At this point, I prefer to look at this through the prism of a range bound market, although it seems like there is a significant amount of support underneath and therefore it is trying to stabilize more than anything else.

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