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

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Friday, but it has been very noisy to say the least. The ¥160 level continues to be an area where a lot of people are paying close attention, and therefore it is causing significant volatility. At this point, it’s very likely that we will continue to see choppy behavior, especially as the 50 Day EMA is sitting right there as well. Keep in mind that the ¥160 level is an area that has been important multiple times, so I suspect that there are a lot of people positioned right around there.

On the other hand, if we were to break down below the ¥159 level, then it’s likely that we could drop down to the ¥158 level. Regardless, this is a market that is going to continue to be very noisy as it is highly sensitive to risk appetite, something that will be all over the place in my estimation. With this, I am cautious about trying to put too much into the market at one point, simply due to the fact that there are so many questions asked.

When you look at this chart, you can see just how noisy things have been, and with that being the case money-management is going to be crucial. However, we are compressing, forming some kind of a triangle, meaning that we should get an explosive move in one direction or the other soon. Once that kicks off, I’m more than willing to trade in whatever impulse of the direction we break out. Until then, it’s a matter of taking your time.

GBP/JPY Price Forecast Video 30.05.22

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