GBP/JPY Price Forecast – The British Pound Continues to Threaten a Major Breakout

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the training session on Tuesday as the market has broken above the ¥167 level. At this point, it looks as if the pound is going to continue to power higher, perhaps trying to take out the “double top” above, and if we can do that, it’s likely that we will see the market take out to the upside, perhaps reaching the ¥170 level over the longer term.

Currently, I look at the 50 Day EMA near the ¥162.50 level as a dynamic support level. As long as we can stay above there, the market is likely going to continue to see a lot of buying pressure, and I think it will remain a “buy on the dips” type of situation. Ultimately, this is a market that I believe will break down, and therefore plenty of people will be waiting to see a short-term pullback that people can take advantage of. On the other hand, if we were to break down below the 50 Day EMA, it’s likely that we would see a move to the ¥160 level. All things being equal, that seems to be very unlikely, but it is something that you need to keep in the back of your mind for a contrarian set up.

Longer-term, I do believe that we are looking to the ¥170 level, and perhaps even higher than that. This pair has been as high as ¥200 and more in the past, and there’s nothing on this chart that suggests that we could not get there over the longer term. I continue to look for value and take advantage of it.

GBP/JPY Price Forecast Video for 22.06.22

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