GBP/JPY Weekly Price Forecast – Signs of Exhaustion

British Pound vs Japanese Yen Weekly Technical Analysis

During the course of the next trading week, the Japanese yen will be one of the most widely followed currencies, but the question is which direction will we move? The candlestick for the week does form a major shooting star, just as it does in other yen-related pairs. Perhaps the Japanese yen has been oversold, and therefore it is very likely that we continue to see a bit of a recovery.

If we were to break down below the bottom of the shooting star, then it is likely that the market goes to look towards the ¥157.50 level, maybe even lower than that. Ultimately, the market is going to pay close attention to how the yen trades against other currencies, and it is worth noting that the British pound is looking a bit sour at the moment. That being said, the market is very noisy, to say the least, and it is of course very sensitive to the risk appetite of the markets.

The Japanese yen is considered to be a safe currency, while the British pound will be considered to be a “risk-on” currency in this scenario. We have gotten a bit ahead of ourselves, so a pullback certainly makes quite a bit of sense and I think would be welcomed news by both the bullish and bearish alike. The USD/JPY pair has pressed up against major resistance and failed during this past week, a resistance that has held for several years. This is possibly a sign that we have finally run out of the upward momentum that has been so apparent as of late.

GBP/JPY Weekly Price Forecast Video 04.04.22

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