GBP/JPY Weekly Price Forecast – British Pound Fighting Support Against Japanese YenThe British pound has pulled back during the week, fighting support near the ¥141 level due to the Bank of England stain on the sidelines and refusing to cut rates.
The British pound has initially pulled back during the trading week against the Japanese yen, as the markets are concerned about the coronavirus. However, by the end of the week things had turned around drastically due to the Bank of England sitting still with interest rates. By not cutting interest rates, this shows that the latest economic data is in fact weighing upon the Bank of England and its monetary policy decisions as economic figures out of Great Britain have been trending higher.
Going forward, there is obvious resistance near the ¥148 level due to the most recent high being there, but it should also be noted that short-term charts show more of a bullish flag that measures for that same move. Ultimately, the ¥150 level will be a major barrier to overcome, but it certainly looks as if the market may at least have that in its sites. The preceding shooting stars from the previous two weeks being broken to the upside would be a major buying opportunity, as it would show an enormous strength in this pair. Furthermore, you have to keep in mind that it is highly sensitive to risk appetite, and the whole scenario with the coronavirus certainly has caused a bit of a “risk off” type of market recently as well. In other words, expect a lot of volatility but the technical analysis is trying to trend higher at this point, and the British pound might be a bit of an outlier when it comes to trading against the Japanese yen in comparison to its contemporaries.