GBP/JPY Weekly Price Forecast – British Pound Explodes to The Upside

Christopher Lewis
Published: Oct 14, 2022, 13:34 UTC

The British pound has exploded to the upside against the Japanese yen during the trading week, as we find ourselves in the same general vicinity that has caused major headaches.

British Pound FX Empire

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British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has shot straight up in the air during the trading week to break above the ¥165 level. That being said, the market still seems to be contained near the ¥167 level.

The 50-Week EMA sits underneath the ¥160 level and is rising. Ultimately, this is a market that I think will be very noisy, due to the fact that the British pound has its own issues, but at the same time we are seeing the Japanese yen get eviscerated. As long as that’s going to continue to be the case, I think we will see a lot of noisy behavior and therefore a lot of volatility. The volatility will cause quite a few headaches but given enough time I do think that we will have to make a bigger decision.

When I look at this pair, the Japanese yen is the main driver what’s going on, because quite frankly the British pound has no business rallying at all. In other words, if we see the Japanese yen strengthened due to the Bank of Japan changing its stance, this will be the first place I start shorting. As far as buying is concerned, I’m not as interested, because quite frankly the British pound itself has so many issues. This is essentially a fight between 2 weaklings, so we need to see one of them make a major attitude shift before you can trade.

GBP/JPY Price Forecast Video for 17.10.22

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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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