The British Pound Continues to Grind Higher Against the Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has initially pulled back just a bit against the Japanese yen during the trading session on Thursday but then turned around to show signs of life again. As I record this, we are trying to take out the top of a shooting star from the previous session. If we can continue to go higher, then it is likely that we would go looking to reach the ¥165 level. That is where we pull back from previously, and we are most certainly in a very bullish run, to begin with.

Another potentially bullish turn of events would be the possibility that the market grinds sideways in this general vicinity, with the ¥160 level underneath offering support, and the ¥162.50 level above offering resistance. That could be what happens next, as it would be the market working off a lot of the froth from the parabolic move higher.

On the other hand, if we break it down below the ¥159 level, then it is possible that we could go looking to reach down to the ¥157.50 level, an area that previously had been massive resistance. “Market memory” would come into play at that point, and it will be a very interesting place to pay close attention to this market. Ultimately, if we were to break out above the ¥165 level, then it becomes more “buy-and-hold” over the next several weeks. As long as the Bank of Japan continues to fight interest rates, the Japanese yen will probably continue to be soft overall, not only against the British pound, but most currencies.

GBP/JPY Price Forecast Video 08.04.22

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