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

British Pound vs Japanese Yen Technical Analysis

The British pound continues to go higher against the Japanese yen in a relentless move to the upside. At this point, there seems to be no real hope of the Japanese yen recovering, especially when you look at the USD/JPY, the benchmark for the Japanese yen. As there seems to be no hope for the Japanese yen recovering, more likely than not you’re going to be better off simply buying dips and taking advantage of the value in this pair. I suspect that the 165 level will be somewhat supportive, but there is probably even more support near the ¥163.50 level based on previous price action.

On the upside, the ¥168.50 level is where we had collapsed from previously, so I anticipate that there will be a certain amount of resistance in that region that could come into the picture. However, I do expect that eventually, we will break above there. Quite frankly, the Bank of Japan is going to do nothing to save its currency, because it is far too worried about interest rates. The goal is to keep the 10-year JGB under 25 basis points, which means that they are going to continue to print yen going forward. The question at this point is whether or not it eventually causes a currency crisis?

Regardless, you cannot short this pair and unless the Bank of Japan changes its overall attitude, that will remain the case. Markets will continue to find plenty of reasons to go higher, despite the fact that risk appetite is miserable, which typically would drive this pair much lower. However, Japan has entered a new phase…

GBP/JPY Price Forecast Video 08.06.22

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