GBP/JPY Price Forecast – The British Pound Explodes to the Upside Against the Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session against the Japanese yen on Tuesday as we continue to see plenty of strength against the Japanese yen in various currencies. With this being the case, the market is likely to continue seeing a lot of noisy behavior, and therefore it is probably only a matter of time before we get a little bit of a pullback.

However, if we can stay above the ¥160 level, then I would be convinced that this market is trying to rally. Keep in mind that this pair is highly sensitive to risk appetite and of course, risk appetite is all over the place right now, so it is going to continue to be a very difficult situation. The size of the candlestick is rather impressive, and that does tell you that there is a little bit of momentum here. If we can break above the ¥162.50 level, that would be very bullish as well. Nonetheless, it is interesting to see how this has played out, but if we get a turnaround and break down below the ¥160 level, then it is likely that we could go much lower.

It is worth noting that the market bounced from the 200 Day EMA, which of course is an indicator that a lot of people pay attention to. If we break it down below that level, then it is likely that the ¥155 level could be the next support level, and breaking down below there would kick this market into a major downtrend just waiting to happen.

GBP/JPY Price Forecast Video 18.05.22

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