GBP/JPY Price Forecast – British Pound Testing 200-Day EMA

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth on Monday as we are watching a dance just above the 200-Day EMA against the Japanese yen. The ¥160 level is an area that people should be paying close attention to, because I think in the short term it looks as if it is going to be a bit of a “floor in the market.” Ultimately, this is a market that will continue to be very noisy, and perhaps hang around in the same 500 point range it had been in previously.

However, if the market were to break down below the ¥160 level, then I think we could go looking to the ¥157.50 level. Keep in mind that the Bank of Japan continues to buy unlimited amounts of bonds, so that’s the same thing as printing currency. At the same time, the Bank of England is dealing with a significant amount of headwinds when it comes to the economy, not the least of which would be a lack of energy over the winter, and of course a massive recession coming.

In other words, the Bank of England is probably going to have to be relatively loose with its monetary policy, especially as we had just witnessed the central bank step in and save the pension funds. In that environment, it’s difficult to see the British pound as being bullish, but at the same time we have this relentless pressure against the Japanese yen. In other words, if the Japanese yen suddenly strengthens, this is going to be the place to start shorting. On the other hand, if the Japanese yen start selling off, this pair will almost certainly underperform.

GBP/JPY Price Forecast Video for 11.10.22

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