GBP/JPY Price Forecast – The British Pound Gets Pummeled Against the Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has gotten hammered against the Japanese yen during trading on Thursday as we have now broken below the 200-Day EMA. Ultimately, the market also broke down below the ¥160 level, and it looks threatened to say the least. If we break down below the bottom of the candlestick, then it’s likely that we are looking to the ¥157.50 level, and beyond. The Bank of Japan intervening overnight spooked the market, and the Japanese yen strengthened quite violently. This was especially true over here where the British pound has been less than loved as of late, and I just don’t see how that changes anytime soon.

I have been saying for some time that this pair will continue to underperform the other yen related pairs, and the Thursday intervention was a perfect example of this. Because of this, I think that we will have to pay close attention to what the yen is doing against other currencies, and trade accordingly. Ultimately, this market also has a certain “risk on/risk off” type of component to it as well. With this being the case, I think it is probably only a matter of time before we see other market forces come into the picture as well.

I think it’s very likely that we will continue to see volatility to say the least, and negativity if things really started to unravel. Ultimately, the work of the buyers is going to be hard to accomplish, so I think we probably have somewhat limited upside in this pair, at least for the short term. Longer-term, that remains to be seen.

GBP/JPY Price Forecast Video for 23.09.22

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