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

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Thursday as we continue to hang about the ¥162.50 level. This is an area that has been resistant multiple times, and therefore it should not be a huge surprise to see that this market is trying to dance around this area yet again. The market is very sensitive to risk appetite, so keep in mind that if we start to get a general selloff when it comes to risk appetite, that will put downward pressure on this pair.

However, if the market were to suddenly get a “risk-on” type of attitude, then the ¥164 level could be taken out to the upside. If that were to be the case, then it’s likely that we would see the market reach the ¥165 level eventually. That being said, there is so much noise just above that I find it a bit difficult to anticipate a big move to the upside without some type of big fundamental change.

If we do fall from here, the 50 Day EMA should be a significant support level, right along with the ¥160 level underneath. Breaking below there would kick off even more selling, and I think would probably be accompanied by indices around the world struggling. I don’t necessarily think this is a market where you need to be aggressive, but it does look more likely than not that we will have a bit of a pullback. With all of the choppy behavior that we have seen as of late, keeping your position size reasonable should be the most important thing.

GBP/JPY Price Forecast Video 03.06.22

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