GBP/JPY Price Forecast – British Pound Recaptures ¥165

British Pound vs Japanese Yen Technical Analysis

The British pound has bounced a bit during the trading session on Monday to recapture the ¥165 level, an area that of course is a large, round, psychologically significant figure, and an area where we have seen a lot of action in the past. The 50-Day EMA sits just above, but if we were to break above it, then I think we could go looking to the ¥167.50 level again. After all, that’s an area that we had seen resistance at previously.

On the other hand, if we turn around and break down below the lows of the last 2 sessions, it will open up the doors to break through the ¥162.50 level, and then of course the 200-Day EMA which sits just below there. Anything below and they are more likely than not will kick off a longer-term selloff, which of course is a little difficult to imagine, as the Bank of Japan continues to work against interest rates, essentially printing yen along the way. That being said, the United Kingdom has its own issues, as the Bank of England has recently stated that a 2 year recession is all but assured.

This market continues to be very volatile, and I don’t think that changes anytime soon. I do believe that we are in the midst of trying to form some type of base, but that probably will take a little bit of time. This is especially true considering that even though the Japanese yen is essentially toxic from a longer-term standpoint, the British pound itself is not exactly squeaky clean at the same time. I do believe that other yen related pairs are probably better trades, but this one I still favor the upside in.

GBP/JPY Price Forecast Video for 15.11.22

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