GBP/JPY Price Forecast – The British Pound Tests 50 Day EMA and Fails

British Pound vs Japanese Yen Technical Analysis

The British pound initially shot higher during the trading session on Thursday to test the 50 Day EMA but turned around as we run out of momentum. Ultimately, the market looks as if we are going to see a lot of volatility in this area, and that should not be a huge surprise due to the fact that the risk appetite is all over the place as of late, and this pair is obviously very sensitive to risk appetite. Furthermore, we have recently seen the market fall apart, and therefore rallies will be looked at with a bit of suspicion.

Having said that, the ¥160 level underneath should continue to be important, so I would look at that as a major support level. If we were to break down through that, that would obviously be a very important move, perhaps opening up fresh selling. Alternately, if we were to break above the 50 Day EMA on a daily close, then we could go to the ¥165 level. Above there, then the market could go to absolute highs, but obviously, we would need to see more of the “anti-yen” attitude out there, as we had previously.

The Bank of Japan still is willing to jump in and buy as many bonds as possible, but we are starting to see the bond markets turnaround in general, and that could have an effect on this market as well. I suspect that if you are going to buy any currency against the yen, we need to pay attention to the USD/JPY pair as a secondary indicator to give us an idea as to whether or not we could continue to climb.

GBP/JPY Price Forecast Video 08.07.22

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