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

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back, but then turned around to show signs of life again. Ultimately, the market is ready to go to the ¥165 level. The ¥165 level is an area that has been important a couple of times, but if we break above there it’s likely that the market goes looking to the ¥167.50 level. That’s an area where we start to see a lot of downward pressure, and therefore I think it does make a certain amount of sense that we would see this be a difficult area to get beyond. However, if we were to do that, the pair would become more of a “buy-and-hold” type of scenario.

On the other hand, if we pull back, the 50 Day EMA sits just below near the ¥163.50 level, and then we have the ¥162.50 level offering support as well. Below there, then you are looking at the possibility of the ¥160 level being tested, which I define as the bottom of the overall trend, and therefore if we break down below there you would have to take a serious long hard look at this. That being said, in the meantime I think it’s all about buying short-term dips, as it has been for quite some time in this market.

The Bank of Japan continues to buy unlimited government bonds, which is essentially the same thing as saying they are doing quantitative easing, and therefore the Japanese yen will continue to get beat up upon by other currencies around the world that have central banks going in the opposite direction.

GBP/JPY Price Forecast Video for 18.07.22

For a look at all of today’s economic events, check out our economic calendar.