GBP/JPY Price Forecast – The British Pound Gives Up Early Gains Against Its Japanese Counterpart

British Pound vs Japanese Yen Technical Analysis

The British pound initially shot higher during the trading session on Tuesday but gave back the gains to show hesitation. At this point, the market looks as if it continues to find quite a bit of selling pressure here, so it should not be a huge surprise that it has happened yet again. The market will continue to be very noisy because there is so much in the way of concern right now when it comes to various economic issues.

As long as risk appetite is all over the place, this pair will do the same. The market had recently broken down, so it’s not a huge surprise to see that we had to bounce. Having said that, the market is now back into the “meat” of the previous technical pattern. Nonetheless, I think this is a mark of the probably pulls back from here, at least in the short term. You cannot read too much into the Monday candlestick, because the Americans were not involved as it was Memorial Day and liquidity would have been greatly reduced.

You should also keep in mind that there are a lot of concerns when it comes to the British pound at the moment, and although the risk appetite will continue to be something that people pay close attention to. Even though the Bank of Japan is in a quantitative easing mode, the reality is that there is so much fear out there that it would not be surprising at all to see this market struggle. Fading rallies may work, but if we break above the ¥162.50 level, it should become very bullish.

GBP/JPY Price Forecast Video 01.06.22

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