GBP/JPY Price Forecast – The British Pound Continues the Volatile Movement

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen against the Japanese yen during the trading session on Wednesday as we continue to see a lot of volatility in almost everything. At this point, it is very likely that we will see an attempt to get back to the highs, which is near the ¥160.50 level, and a place where we had formed a bit of a double top. We can break above that, then it becomes more of a “buy-and-hold” situation. If that type of situation occurs, it’s likely that this market could go looking to the ¥170 level rather quickly as we have seen so much pressure above.

If we do pull back, the ¥165 level is a candidate for significant support, but breaking down below there could open up a move down to the ¥162.50 level, where the 50 Day EMA is currently sitting. It’s also worth noting that the 50 Day EMA has come into the picture as potential dynamic support, so pay close attention to that indicator. Underneath there, then you have the ¥160 level, where I would define the trend in general. If we were to break down below there, then one would have to think that eventually, the trend would give it up.

That’s a bit difficult to imagine at the moment though because quite frankly the Bank of Japan has doubled down on its desire to fight interest rates rising, meaning that they are essentially “printing yen” and therefore the Japanese yen continues to be a bit of a punching bag for most currencies. Ultimately, I do think that this pair does break out, but keep in mind that it’s also very sensitive to risk appetite.

GBP/JPY Price Forecast Video 23.06.22

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