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

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied again during the Friday session against the Japanese and, as we are starting to see Japanese Yen weakness across the board. As long as the Bank of Japan continues to do everything it can to fight bond yields rising, this is tantamount to quantitative easing. This will continue to work against the value of the Japanese currency, as the Bank of Japan will continue to print Yen.

At this point, it looks as if the ¥165 level may be challenged again. If we can get back to that level, then it would very likely be a psychological barrier, but we have broken above it before. It’ll be interesting to see how this plays out, because the British pound itself is a little bit lackluster, although it must be said that it has held up against the greenback strength much better than some of its contemporaries.

On a pullback, I would anticipate that there should be some buying pressure near the ¥162.50 level, and then again at the 50 Day EMA. I don’t have any interest in selling, at least not right now, as this market seems to be a bit of a juggernaut, even though it had sold off so viciously before. Quite frankly, you also have to keep in the back of your mind that there is a significant risk premium and to this para, so if we see a lot of panic out there, they will probably sell off this market. In the meantime, expect a lot of noisy behavior as per usual for this pair.

GBP/JPY Price Forecast Video 06.06.22

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