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GBP/JPY Price Forecast – The British Pound Gives Up Early Gains in a Weak Attempt to Recover

By:
Christopher Lewis
Published: May 13, 2022, 13:46 UTC

The British pound initially rallied during the trading session on Friday to show signs of life again, but the ¥157.50 level looks to be offering a bit of a fight.

GBP/JPY Price Forecast – The British Pound Gives Up Early Gains in a Weak Attempt to Recover

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British Pound vs Japanese Yen Technical Analysis

The British pound has rallied a bit during the trading session on Friday to break above the ¥157.50 level, and then pulled back to show signs of life. Ultimately, this is a market that is trying to recover from the 200 Day EMA, but we have not been able to rally enough to make this significant. The market will continue to be sensitive to risk appetite obviously, and therefore you need to pay close attention to what is going on in other markets as it can have a knock-on effect over here. The market will continue to be very noisy, but at this point, the ¥160 level above will be a major barrier to get above.

If we break down below the 200 Day EMA, it is likely that we go looking to the ¥155 level. This is a large, round, psychological number that a lot of people will be paying close attention to. The market will continue to be very noisy, but I do think it is probably only a matter of time before we see some type of opportunity in this market.

I suspect that this is going to remain a “sell the rallies” type of situation. If we do break down below the ¥155 level, then the market is almost certainly going to go looking to reach the ¥151.50 level after that. This market will continue to be very noisy and dangerous, so the one thing that you do need to do is keep your position size reasonable. As we head into the weekend, I would anticipate a lot of profit-taking.

GBP/JPY Price Forecast Video 16.05.22

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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