GBP/JPY Weekly Price Forecast – The British Pound Recovers for the Week

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has fallen rather significantly during the trading week, specifically during the Bank of England announcement. However, we have seen a nice recovery from the ¥160 level, which is an area that has been important a couple of times. By bouncing 500 points, it does suggest that there are still plenty of buyers out there, so buying on the dips will more likely than not be a nice buying opportunity. However, you need to keep in mind that this pair is extraordinarily volatile, and there’s nothing to suggest that it’s going to stop being so.

If we were to break down below the ¥160 level, then we could open up a move down to the ¥157.50 level, which was the previous resistance. The 50 Week EMA is starting to get to that area, and therefore it’s likely that we will continue to see a lot of buyers look at that through the lens of value. If we were to break down below that level, and perhaps even the ¥155 level, then it’s likely that we go much lower.

On the other hand, if we break above the ¥168.50 level, then we are free to go to the ¥170 level, and there’s nothing coming out of the Bank of Japan that suggests that they are going to stop their quantitative easing, meaning that this pair will almost certainly at least attempt to make that move over the next several weeks. At this point, the Japanese yen is being eviscerated by almost everything, including the British pound. Unless we see central banks change their attitudes, the trend is firmly ensconced.

GBP/JPY Price Forecast Video 20.06.22

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