GBP/JPY Weekly Forecast – The British Pound Plunges Against the Japanese Yen

GBP/JPY Forecast Video for 05.12.22

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has fallen rather hard against the Japanese yen during the course of the week to plunge below the ¥165 level. However, we would find buyers underneath to show signs of life again. The ¥165 level has been important multiple times, as it has been resistance for months, so now it’s offering support. Keep in mind that this pair is highly sensitive to risk appetite, so that is something that needs to be thought of as well.

When you look at this chart, you can see that the market has been very noisy, and the fact that we are at a decision point will only exacerbate that issue. Keep in mind that the pair is highly sensitive to risk appetite, which is a bit cautious at the moment. Whether or not we continue to see bullish pressure will come down to risk appetite overall, and of course the fact that the Bank of Japan has been doing everything he can to keep interest rates down. As long as that’s going to be the case, then I do prefer the upside, but I also recognize this is a very sloppy market right now, so you will have to be cautious with your position sizing.

The ¥167.50 level is an area of resistance, and the ¥162.50 level is an area of support that the market will be looking for. The attitude of the market will continue to be one that is erratic to say the least, so you need to be very cautious with your position size. This is especially true as we get to the later part of December.

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