GBP/JPY Price Forecast – British Pound Continues to Collapse
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen hard during the trading session on Friday, breaking down below the ¥160 level. This is a market that I think will continue to see a lot of noisy behavior, and I think with the absolute terror that is out there in the hearts of some people, it’s likely that we continue to see the Japanese yen favored over the British pound. However, this is a fight between 2 lightweights, and therefore the volatility will continue to be massive. Furthermore, you should also keep in mind that the market is probably going to see a lot of concern out there.
The British pound itself is probably the main driver of the pair now, and if we break down below the ¥147.50 level, then it’s likely we can look into the ¥155 level. Ultimately, this is a market that I think continues to see a lot of trouble, and therefore I think that you need to pay attention to how the yen is behaving against other currencies, because of it starts to pick up strength, over here we are going to see this market absolutely collapse.
I do not have any interest in buying this pair, and if I choose to short the Japanese yen it will be by going long the USD/JPY pair. Yes, the Bank of Japan has just intervened, but I don’t know that it truly matters. This type of environment is going to continue to be very brutal, and therefore you need to be cautious. Remember, even in the worst bear markets there are huge bounces, you do not want to get caught in a huge position on the wrong side of that.
GBP/JPY Price Forecast Video for 26.09.22
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