GBP/JPY Price Forecast – The British Pound Continues to Grind Higher

British Pound vs Japanese Yen Technical Analysis

The British pound has broken above the ¥165 level and now looks as if it is ready to go to the highs again. That being said, a lot of this comes down to the Bank of Japan, as it is doing everything it can to fight the interest rates rising in that country, meaning that it will essentially “print yen” and drive the value of the currency lower. Pullbacks should offer buying opportunities, as there are plenty of buyers underneath. The ¥162.50 level would be an area that would attract a lot of attention from what I can tell.

I do think that it will be very noisy, but that should not be a huge surprise considering just how erratic the risk appetite around the world is at the moment. In fact, it’s not until we see a breakdown below the ¥160 level that I would be concerned about the trend. Breaking down below that level opens up the possibility of a move down to the 200 Day EMA, and then the ¥155 level. I don’t necessarily expect to see that happen, but it is something that would be possible. I think the only thing you can probably count on right now is a lot of choppy behavior, but if we do break out to the upside and clear the high, things could get very interesting as it would become more of a “buy-and-hold” type of situation.

When you look at this chart, there is certainly an upward bias, and that is something that you need to keep in the back of your mind in order to look at the longer-term trend and take advantage of it.

GBP/JPY Price Forecast Video 21.06.22

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