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 trading session on Thursday and what is considered to be a parabolic market at this point. Ultimately, any pullback at this point in time will be thought of as a buying opportunity unless something structurally changes. The ¥165 level would be an area where I would anticipate seeing buyers, as it is a large, round, psychologically significant figure, and an area where we have seen action in the past.

Even if we break it down below the ¥165 level, the ¥162.50 level then comes into play, possibly being a buying opportunity. The 50 Day EMA is starting to reach that area, showing signs of life yet again. Ultimately, until the Bank of Japan decides to stop killing its own currency by fighting interest rates rising. As long as they are hell-bent on keeping the 10 year yield below the 0.25% level, it’s going to continue to cause the Japanese yen to fall.

If the Bank of Japan changes its tune, then it is likely that we will see the market turn right back around. Keep in mind that there’s a lot of risk aversion out there, so the Japanese and would be one of the first places people would jump to if they have the central bank change its attitude. Underneath, this is a market that I think there are plenty of value hunters out there willing to get involved in, so you have to look at that as a potential opportunity. The market is parabolic, so at this point, I think you need to keep it in mind before you just jump in and start buying.

GBP/JPY Price Forecast Video 09.06.22

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