Advertisement
Advertisement

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

By:
Christopher Lewis
Updated: Jun 6, 2022, 13:43 UTC

The British pound initially pulled back just a bit during the trading session on Monday but found plenty of buyers to push the market back to the upside.

British Pound FX Empire

In this article:

British Pound vs Japanese Yen Technical Analysis

The British pound fell to kick off the Monday session against the Japanese yen but has turned around to show signs of resiliency sense. Because of this, the market looks very likely to continue seeing bullish pressure, and perhaps make a serious attempt at breaking above the ¥165 level. If we do, the market is more likely than not going to continue to go higher and challenge the recent highs, closer to the ¥167.50 level.

The ¥160 level looks to be the floor in the market currently, especially as the 50 Day EMA now sits above there and is curling higher. Pullbacks at this point will almost certainly bring in fresh buying pressure, as we have seen so much interest in this pair over the last couple of weeks. It has been very noisy, but that should not be a huge surprise considering how much fear there is out there at the moment. Because of this, I think it is probably only a matter of time before we see more volatility.

If we were to break down below the ¥160 level, then I can make an argument for a deeper correction, perhaps down to the 200 Day EMA, currently at the ¥156.50 area. One would have to believe that the 200 Day EMA would attract a lot of attention, so you would have to pay close attention to how it reacted to it. That being said, we are much more likely to see a pullback offer a buying opportunity at much higher levels than that, so pullbacks will be scrutinized quite closely as well.

GBP/JPY Price Forecast Video 07.06.22

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement