GBP/JPY Weekly Price Forecast – The British Pound Continues to Bounce Around

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has gone back and forth during the course of the trading week to show signs of confusion against the Japanese yen. Looking at the candlestick, it’s very choppy behavior, but it does point out a couple of things. We are still very much in the midst of a consolidation area, that would be the first thing I noticed, and then of course the second one is that the ¥160 level was confirmed yet again as being supportive. The 50 Week EMA is trying to restore that area as well, since can be very interesting to see how that plays out if and when we get there.

On the upside, the ¥163 level continues to be a bit difficult to break above, and most assuredly the ¥165 level will be difficult as well. If we can break above there, then we can continue the overall long-term trend, which of course has been very bullish. Quite frankly, the British pound itself is rather sickly, but with the Bank of Japan having to do everything it can to keep interest rates lower, means that they are essentially “printing yen”, driving down the value of that currency.

In that sense, you are much better off trading something like the AUD/JPY pair, NZD/JPY pair, etc. The British pound simply has far too many headaches attached to it to get overly excited, so therefore I think this is a market that at best you are looking at more of a sideways grind, perhaps with a little bit more emphasis on the negativity than you would see in other Japanese yen related pairs.

GBP/JPY Price Forecast Video 22.08.22

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