GBP/JPY Price Forecast – British Pound Dips but Remains Resilient

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen initially during the trading session on Thursday to show signs of weakness against the Japanese yen, however, we have turned around to show signs of life again and now it looks as if the market is going to continue to see plenty of volatility but also a resurgence of strength. The question now is whether or not we can continue to go higher and break above the ¥170 level, or if we are going to simply pound around in this same area.

I do believe that given enough time we probably go higher, for no other reason than the Bank of Japan printing unlimited yen, fighting yields rising in the bond market. Ultimately, I think this is a scenario where you need to see a lot of effort to push the market back down and make it stick. Quite frankly, I think the “buy on the dip” mentality is still very strong in this market, and I just don’t see how the changes anytime soon.

The ¥167.50 level seems to be rather important, and I think it does offer a significant amount of support. The market will more likely than not continue to see buyers show up in that area, and even if we do break down below there, the ¥165 level is an area that I think comes into the picture as well, as we clearly have a lot of buying pressure underneath. Despite the fact that I do not like the British pound these days, the reality is that the Japanese yen is even more toxic at this point.

GBP/JPY Price Forecast Video for 28.10.22

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