GBP/JPY Price Forecast – British Pound Bounces During the Session

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Thursday, showing signs of recovery against the Japanese yen. After all, it does make a certain amount of sense that the Japanese yen would continue to be sold based upon the fact that the Bank of Japan continues to feel the need to fight interest rates rising. In other words, the market will more likely than not look at the Japanese yen as something that will continue to be flooded into the market, meaning that the British pound should fare reasonably well against it.

Having said that, the market continues to see a lot of noisy behavior, so you would have to be cautious about jumping in with both feet, and you should probably also pay close attention to the fact that the United Kingdom itself has a whole ton of problems to deal with. The market will more likely than not continue to see a lot of back-and-forth, but I think that the ¥165 level is significant support, especially with the 50-Day EMA sitting underneath. If we break above the ¥167.50 level, it is likely that we could go to the ¥170 level next.

Keep in mind that the market is more likely than not going to continue to see this underperform some of the other Japanese yen related pairs, but at the end of the day it is in a positive trend, so I don’t have any interest in trying to short this market. The one thing that can change that is if there is some type of meltdown in Great Britain, or if the Bank of Japan suddenly decides to switch gears.

GBP/JPY Price Forecast Video for 11.11.22

For a look at all of today’s economic events, check out our economic calendar.