GBP/JPY Price Forecast – The British Pound Bounces From a Large Round Figure
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen a bit during the trading session on Wednesday to reach the ¥160 level. This is an area that of course is a large, round, psychologically significant figure, and an area that traders will continue to look at as a potential floor. There is a significant amount of noise at this point, so I think we probably continue to look at this as a range of support, with the ¥159 level offering quite a bit of support as well. There are roughly 100 pips worth of noise there that will continue to be paid close attention to.
Ultimately, this is a market that I think will continue to move with risk appetite, so therefore it could be in some trouble due to all of the fear and concern out there. That being said, if we were to break down below the ¥159 level, then the market will almost certainly break down to the ¥157.50 level, which was a previous resistance barrier. Keep in mind that the Japanese yen is considered a safe currency, but at the same time, we have the Bank of Japan doing everything it can to drive yields lower.
Looking at this chart, you can see just how noisy it has been over the last couple of days, so be interesting to see just how this market reacts over the longer term. If we can take out the last couple of days to the upside, that might be bullish enough to get things moving higher.
GBP/JPY Price Forecast Video 12.05.22
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