GBP/JPY Weekly Price Forecast – The British Pound Continues to Skyrocket Against the Japanese Yen

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has skyrocketed against the Japanese and during the week, as it looks like we are going to continue to go much higher. At this point, it looks like the pair is going to target the ¥165 level, were we had formed a massive shooting star a couple of months ago. At this juncture, it looks very much like we are going to have buyers come in on short-term pullbacks, so it’s difficult to short this market. In fact, I believe that the ¥160 level underneath would have to be broken to have that argument in any type of serious manner.

When you look at the daily chart, you can make out that we had previously formed a head and shoulders, but we had basically fulfilled the target from that pattern, and have bounced straight up in the air percent. As long as the Bank of Japan continues to fight interest rates by purchasing bonds, they are doing quantitative easing. They are one of the few banks in the world doing that right now, so it makes sense that the Japanese yen continues to get hammered against almost everything, especially high flyers like the British pound.

I don’t necessarily think that we go straight up the air forever, and I would expect a little bit of psychology to come into play at the ¥160 level. That being said, there’s nothing on this chart that tells me we should be shorting this market as the uptrend has been so firmly ensconced in this pair for quite some time.

GBP/JPY Price Forecast Video 06.06.22

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