The British Pound Continues to Show Hesitation

British Pound vs Japanese Yen Technical Analysis

The British pound has initially tried to rally during the trading session on Wednesday but gave up gains to drive down towards the ¥161 level before finding a little bit of support. We had formed a massive, long wick during the previous session, so it does suggest in fact that the market is pulling back. The markets continue to be very noisy, to say the least, as we had been so parabolic as of late. Because of this, the volatility will come back into the picture, but I do think that it is only a matter of time before we have to make a bigger decision.

Underneath current trading, the ¥160 level will be an area of interest as well, and breaking down below that level then opens up the possibility of the ¥157.50 level being targeted. That is an area that we had broken through, so that would now more likely than not be a support level. The market memory in that general vicinity should be rather important, especially with the 50 Day EMA racing towards it. Even if we did pull back to this level, quite frankly it would still be well within the realm of a simple pullback.

On the upside, the market has been far too stretched to consider buying it at this point, unless of course, we consolidate for a while as it will work off some of the froth. At this point, the market needs to at least come back down to earth or at least go sideways initially. At the very least, the market is likely to see a calming.

GBP/JPY Price Forecast Video 30.03.22

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