The British Pound Gives Up Early Gains Against Japanese Yen

British Pound vs Japanese Yen Technical Analysis

The British pound initially tried to rally during the trading session on Thursday but gave back gains as momentum ran away from the market. Quite frankly, this is a market that is far too overextended, so at this point, it makes quite a bit of sense that we would see a bit of a pullback. This pullback is desirable because quite frankly the market cannot go straight up in the air forever. The ¥165 level does make a certain amount of sense for a support level going forward, so I would see this as a potential opportunity.

The Bank of Japan continues to put a lid on interest rates, therefore “printing yen”, or at least offering a lot of quantitative easing. The Bank of Japan is one of the few places that is doing that at the moment, and therefore the Japanese yen will continue to get hammered. Because of this, the market is likely to see a lot of volatility, but I am more than willing to step on the sidelines and simply let the market come back to me, offering a bit of value underneath.

If we were to break above the top of the Wednesday candlestick, that would be yet another leg higher and would be even less stable as the market would be even more parabolic. I do not like that idea, so therefore I would be very cautious about buying this market all the way up there because quite frankly we are going to have a massive pullback sooner or later, however, we do not necessarily know when that is coming.

GBP/JPY Price Forecast Video 22.04.22

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