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

British Pound vs Japanese Yen Technical Analysis

The British pound rallied significantly during the trading session on Thursday to test the ¥165 level. The ¥165 level is an area that has been important multiple times, so it does make quite a distance that we would see this as an important magnet for price. If we can break above the top of the candlestick for the trading session on Thursday, then it’s likely that we could go all the way to the ¥168.50 level.

Keep in mind that this pair is highly sensitive to risk appetite, as the Japanese yen is considered to be a safety asset. However, we also have a huge factor in this market via the Bank of Japan and the fact that it is doing massive quantitative easing. Because of this, the market does act a little squirrelly as of late, and therefore it has been very difficult to trade. However, it seems like the interest rate differential is the only thing that most traders are paying attention to, so it still favors the upside in general.

The 50 Day EMA sits at the bottom of the candlestick for the trading session; therefore, it makes quite a bit of sense that we would see a little bit of support based on that area. Ultimately, I think this is a situation where the market will continue to favor buying the dips and eventually try to break out to reach fresh new highs. Ultimately, the ¥160 level looks to be a bit of a floor in the market, so if we break down below their things change. Until then, this market still looks like it favors the upside.

GBP/JPY Price Forecast Video for 15.07.22

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