GBP/JPY Price Forecast – The British Pound Shoots Higher

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied significantly during the trading session on Friday to break above the ¥165 level. We have pushed back a bit, but it still looks as if the Bank of Japan is going to hold steady on its manipulation of the bond market. Because of this, it’s likely that the Japanese yen will continue to get pummeled, as they fight to keep the 10-year yield below 0.25% persists.

Furthermore, this is apparent that tends to be very volatile, to begin with, so it should not be a huge surprise to see this market go to the upside if we have the status quo continue. The ¥162.50 level offers support, right along with the 50 Day EMA which is just below and rising. The ¥168.50 level above is where we had previously formed a bit of a “double top”, therefore I think if we can break above there, it would obviously be a very bullish turn of events. In that scenario, we could really take on the upside.

If we were to break down below the 50 Day EMA, then it’s possible that we could go down to the ¥160 level, an area that has been important multiple times recently. Breaking down below that level could be a huge change in attitude, and it could be part of a “risk-off” type of move. In that scenario, we could see a lot of negative action around the world, and therefore people might run away from the British pound and into the Japanese yen just because it’s considered to be a “safe currency.”

GBP/JPY Price Forecast Video 20.06.22

For a look at all of today’s economic events, check out our economic calendar.