The British Pound Continues to Reach Ever-Higher Levels During the Week

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied during the course of the trading week to reach the ¥162 level. This is an area that of course is going to cause a little bit of psychological resistance, but at the end of the day, the market is very bullish, and it looks as if we will attempt to try to go higher. That being said, the market was to turn around and pull back, and the ¥160 level could be supported. It is worth noting that the market will be very noisy in that area.

You should also keep an eye on the USD/JPY pair because it will measure the value of the Japanese yen itself. Ultimately, this is a market that will continue to be heavily influenced by the Bank of Japan and the program of pushing down interest rates. As they flood the market with yen, that does make the Japanese yen extraordinarily vulnerable. However, the market has gotten a little overdone, and it is probably worth noting that we formed a massive shooting star during the previous week. That suggests that the market is starting to get exhausted.

If we were to break down below the ¥160 level, then it is possible that we could go looking towards the ¥157.50 level, an area that was previous resistance. Based upon “market memory”, it is possible that it should be a massive support. Either way, a lot of this is influenced by risk appetite as well, so keep that in mind. The bank of Japan continues to interfere in the market, so that is something worth paying close attention to. If we were to break above the ¥165 level, then things could get rather explosive.

GBP/JPY Price Forecast Video 11.04.22

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