GBP/JPY Price Forecast – The British Pound Continues to Break Higher Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound rallied a bit during the course of the trading session on Tuesday to break back above the ¥165 level. This is a market that looks like it’s doing everything it can to squeeze higher, but perhaps the most important phrase here is going to be “squeeze.” After all, it is not exactly shooting straight up in the air, but it does have a certain amount of relentlessness to it.

Dips at this point in time should be thought of as potential buying opportunities as the Japanese yen continues to get pummeled by almost everything, let alone the British pound. Because of this, the market is more likely than not going to continue offering potential buying opportunities every time it dips, and that’s probably the best way to look at it. After all, when you look at the longer-term charge, you can see that there has been a gradual grind higher.

All that being said, you should probably also note the fact that the ¥168.50 level seems to be a massive resistance barrier that has been almost impossible to take out. Because of this, if we were to ever break above there, it almost certainly opens up the possibility of a move to the ¥170 level, and perhaps even higher than that over the longer term.

The Bank of Japan will continue to keep its monetary policy extraordinarily loose, therefore it does favor this pair going higher over the longer term. However, there is a certain amount of “risk on/risk off” attitude that gets thrown into the spare as well, as it rises and falls with risk appetite so you need to be cognizant of this.

GBP/JPY Price Forecast Video for 20.07.22

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