GBP/JPY Price Forecast – The British Pound Gives Up Early Gain on Tuesday

British Pound vs Japanese Yen Technical Analysis

The British pound has tried to rally during the trading session on Tuesday, but it has given back the gains as they continue to sell anything remotely close to being a “risk asset.” With this in mind, I think the market will continue to drop, but the 50 Day EMA may offer a little bit of dynamic support. At this point, it’s possible that we may go back down to the ¥160 level, but one thing is for sure, the Bank of Japan is doing everything it can to destroy its own currency, so this is going to be an interesting and somewhat bipolar market.

When you look at this chart, you can see clearly that we have seen a lot of noisy behavior over the last couple of months and that’s indicative of the major problems with risk appetite that have been seen. We did form a massive” double top” recently, but I don’t know that the Japanese yen will strengthen in the long term, mainly because of the quantitative easing that the Bank of Japan insists on doing. That being said, if other central banks around the world start to pull back their tightening policy, look out below.

More likely than not, any breakdown from here will end up being a buying opportunity down the road, but right now things are just too volatile to get overly exposed to this currency pair. Remember, this is not just an argument between central bank policy, but it is also a barometer of risk appetite at times. Clearly, we continue to go back and forth between the two scenarios.

GBP/JPY Price Forecast Video 15.06.22

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