GBP/JPY Price Forecast – The British Pound Collapses Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has initially rallied on Monday but gave back this gain rather rapidly as we sliced through the ¥165 level. By doing so, it looks as if the market is struggling a bit and now may have to go lower in order to find buyers. That does make a certain amount of sense as there’s a major “risk-off behavior.” Ultimately, I think this is a market that will probably focus on the Bank of Japan again, and therefore we will eventually find buyers. We did just form a major “double top”, so that is something to pay close attention to. We are obviously in a very precarious spot.

If we turn around and bounce, then I think it’s worth taking a shot to the upside, but I would not do so with the huge position. Yes, this has been an extraordinarily strong rally over the last several months, but at the end of the day, we have a lot of things going on in multiple different directions. Quite frankly, it will be whatever the market is freaking about during that particular day that will either have you making money or losing it. In the scenarios, it is crucial that you are very cautious.

The ¥162.50 level is an area where I would anticipate we may see a bit of buying because it has been important a couple of times in the past, and of course the 50 Day EMA is in that general vicinity and looking to support the market. In that scenario, I think this ends up being a nice little correction that most people take advantage of. On the other hand, if we break down below that level, then it’s very possible that we see this pair reached toward the ¥160 level.

GBP/JPY Price Forecast Video 14.06.22

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