GBP/JPY Forecast – British Pound Sores Against Japanese Yen

GBP/JPY Forecast Video for 01.12.22

British Pound vs Japanese Yen Technical Analysis

The British pound has taken off against the Japanese yen during trading on Wednesday, breaking the top of the inverted hammer from the Tuesday session. By doing so, it is threatening the 167.50 resistance barrier, an area that was supported just a few days ago.

Ultimately, I think this is a pair that continues to be very choppy, but I certainly don’t like the idea of shorting it, mainly due to the fact that the Bank of Japan continues to do everything it can to stick to its yield curve control policy. That’s the same thing as printing yen, so that’s obviously not a good thing. Ultimately, I think the ¥165 level comes into the picture and if we were to break down below there, I think there’s plenty of support as well.

That being said, if the Japanese yen were to suddenly strengthen, this might be the pair where I would start shorting, but at this point it’s very unlikely to happen with any type of significance. After all, the British pound is very sickly, and it looks like it’s trying to roll over against the US dollar. That being said, this point it’s still about shorting the yen, and therefore I think this pair continues to chop to the upside.

Quite frankly, there are probably easier pairs to trade right now if you want to short the yen, as the market has been nothing but noise, but at the end of the day I still think that every time we pull back it’s a buying opportunity going forward. On the upside, the ¥170 level would be the target, but it’s going to take a lot of work to get there.

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