GBP/JPY Price Forecast – The British Pound Gets Pummeled

British Pound vs Japanese Yen Technical Analysis

The British pound has broken rather hard to the downside during the trading session on Thursday, as we continue to see a lot of noisy behavior. Ultimately, this is a market that I think will see even more volatility, which makes quite a bit of sense considering that the pair is so highly sensitive to risk appetite. The fact that the market has been through a lot of ups and downs makes for a good proxy as to what we are seeing out there in other markets. The volatility will pick up in the short term, and I think you have to keep that in the back of your mind.

The 50 Day EMA underneath it is offering support, right around the same uptrend line that makes up the bigger triangle. The market is more likely than not to have an explosive move one way or the other, and it’s only a matter of time before we see a bigger move that we can follow. Once we break out of this triangle, we could go as high as ¥169, or as low as ¥160. I’ll be paying close attention to any breakouts, based on a daily close. Until then, I think you are more likely than not going to get chopped up trying to trade this market.

Do not forget that the Bank of Japan is doing everything it can to keep interest rates low, meaning that they are doing “quantitative easing”, which is bad for the Japanese Jen. Ultimately, I think this is a market that will continue to be very noisy, so you need to give that in the back of your head.

GBP/JPY Price Forecast Video for 29.07.22

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