GBP/JPY Price Forecast – British Pound Continues to threaten the Upside

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session against the Japanese yen during the day on Tuesday, as we continue to try to go to the ¥170 level. This is an area where you would expect to see a lot of resistance, but if we do break above there, the British pound could really start to take off. At that point, it’s difficult to imagine where the Japanese yen would find strength, without the Federal Reserve getting involved and intervening in the market.

If we do break down from here, it’s likely that we could see the market drop to the ¥165 level, which is an area that previously had been resistance, and has even offered support. At this point, I think short-term pullbacks could be value just waiting to happen.

The Bank of Japan will possibly try to take the value of the Japanese yen higher, but quite frankly it’s only a matter of time before buyers come back in and pick up anything against the Japanese yen as long as the Bank of Japan continues to see the reason to keep interest rates down, therefore essentially print unlimited yen as they buy unlimited bonds. At this point, the Japanese yen is like a bug that is currently finding a windshield, and therefore it certainly makes quite a bit of sense that we will continue to see almost any currency beat the yen.

The one thing that could be a bit different here is the fact that the British pound has an economy that is also a major issue as well. Ultimately, this is a market that continues to see a lot of concerns in both the United Kingdom and Japan, but currently we are focusing more on Japan.

GBP/JPY Price Forecast Video for 26.10.22

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