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

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied again against the Japanese yen as we continue to see a lot of noisy behavior. Keep in mind that this pair is highly sensitive to risk appetite, so that should not be a huge surprise. After all, the Japanese yen has been like a literal punching bag for currency traders of the last couple of months as the Bank of Japan continues to bite “unlimited 10 year JGB’s” to keep the interest rates at 0.25%. This is tantamount to extreme quantitative easing, but even Japan is now starting to see inflation, for the first time in 40 years.

Pullbacks at this point should continue to look at the 162.50 level as a potential support level, but I think there’s even more support at the ¥160 level. Because of this, the market is more likely than not going to continue its choppy, yet upward behavior. The ¥165 level above should offer resistance, but that doesn’t necessarily mean that we won’t break above it.

After all, we have been above there a couple of times recently, and it would make sense that we go looking to test that area again. It’s worth noting that each successive low continues to grind higher, so when you zoom out far enough, you are looking at an ascending triangle, a shape that is showing the market trying to build up enough momentum to break much higher. The “measured move” could be as much as 15 handles once we break out.

GBP/JPY Price Forecast Video for 14.07.22

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