GBP/JPY Price Forecast – The British Pound Continues to Chop Back and Forth

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit during the trading session on Wednesday, but it looks as if we are trying to confirm the ¥165 level as potential support. Ultimately, the market is likely to see a lot of noise in this general vicinity, perhaps grinding all the way up to the ¥168.50 level. That’s an area that has been very tough to get above, so if we were to break above that level, I think it opens up a clear path to the ¥170 level.

A breakdown below the ¥165 level will have this market testing the 50 Day EMA, which is currently at the ¥163.50 level and rising. Ultimately, this is a market that I think it will continue to be very noisy and rise and fall with the risk appetite of traders, as well as following the statements coming out of the Bank of Japan as they are doing a lot of quantitative easing. However, the market is likely to see the next monetary policy statement as crucial, so I will be paying close attention.

Ultimately, this is a market where you need to be cautious with the position size, because of all of the noise that we have out there. That’s probably only going to get worse at this point, and therefore you need to be cautious overall. The “safest” position for most traders will be buying dips, but whether or not that works out remains to be seen in this type of environment.

GBP/JPY Price Forecast Video for 21.07.22

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