GBP/JPY Price Forecast – The British Pound Continues to Bounce

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit during the trading session on Tuesday to reach down to the 200-Day EMA, which of course is an indicator that a lot of people pay close attention to. Furthermore, we have seen a major turnaround during the day, so it does look like we have a little bit of momentum coming into this market. That being said, when you look at the bigger picture, we have been in a trading range for some time.

The market is currently trading between the 200-Day EMA and the 50-Day EMA, which quite often means that you are bound to get squeezed. This means that momentum could come back into the picture and move this market quite quickly. However, I think the most likely of outcomes is that which is simply trade in the same 500 point range that we have been in for a while.

If we turn around and break down below the ¥160 level, then we could see the bottom fall out, opening up the possibility of a move down to the ¥157.50 level. On the other hand, if we break above the 50-Day EMA, then it’s possible that we could go looking to the ¥165 level after that. Ultimately, this is a situation where you think you see a lot of noisy behavior, and of course reactions to both the British bond situation as well as the Bank of Japan buying unlimited bonds in that country. In other words, this will continue to be very noisy over here. Regardless, I think range bound is probably the most likely of outcomes over the next couple of weeks.

GBP/JPY Price Forecast Video for 12.10.22

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