GBP/JPY Price Forecast – British Pound Gives Up Early Gains Yet Again
GBP/JPY Forecast Video for 09.12.22
British Pound vs Japanese Yen Technical Analysis
The British pound initially tried to rally during the trading session on Thursday to show signs of life again. The ¥167.50 level is an area that a lot of people have been paying attention to, and it has offered a significant amount of resistance. The 167.50 level is an area that’s been a significant resistance barrier previously, and the fact that we have pulled back from there a couple of times suggests that this is of course going to be a very difficult barrier to get above.
Underneath, we have the 50-Day EMA, offering potential support. If we break down below there, then we have the ¥165 level underneath that has been a major support level. I think in general this pair is going to continue to be very noisy, and therefore it’s more or less going to be a bit of a sideways type of market. Quite frankly, I think the biggest problem that you will have here is that the British pound has its own issues, while the Japanese yen is very soft due to the fact that the Bank of Japan continues to fight interest rates. Speaking of which, if interest rates around the world do drop a bit, that strengthens the yen because there is a lot less pressure on the Bank of Japan to print more currency to buy more bonds.
Because of this, the market is likely to be very noisy, because there are quite a few different things pushing it around from the outside at any given moment. But that being said, we can continue to see a lot of back-and-forth action over the next couple of days.
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