GBP/JPY Price Forecast – The British Pound Bounces From the 50 Day EMA

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen a bit against the Japanese yen in early trading on Wednesday, but it looks as if the 50 Day EMA is offering support, right along with the ¥162.50 level. Ultimately, this is a market that has fallen quite hard over the last couple of days, and as a result, it does make sense that we would have a bit of a relief rally. Furthermore, the pair had been in a massive uptrend, before forming a bit of a “double top.” Whether or not the double top plays out to us in this market much lower is an open question at this point, but with the Bank of Japan doing everything it can to drive down yields, it is the same thing as quantitative easing.

As long as that is going to be the case, the Japanese yen the ease going to feel the pressure. That being said, keep in mind that this pair is highly sensitive to risk appetite, so therefore it’ll go up and down depending on what other markets adorned along the lines of stocks, bonds, and commodities. While it can be a messy market to deal with at times, the reality is that it does move quite rapidly once it makes up its mind.

During the day on Wednesday, the Federal Reserve will announce a rate hike. This could have a major influence on risk appetite around the world, so it’s a bit messy to try to analyze this right now, but clearly, we are going to have to cut down our position size regardless of which way we break. If we break down below the lows of the Tuesday session, then the ¥160 level could be targeted. On the upside, if we break above the highs of the last 24 hours, we could go higher to reach the ¥165 level.

GBP/JPY Price Forecast Video 16.06.22

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