The British Pound Runs Out of Momentum

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Tuesday as we are starting to run out of momentum. At this point, the ¥162.50 level could be a support level based on the previous resistance as well. Upon, I believe that the ¥165 level is going to be significant resistance, so you need to be cognizant of this overall range. Whether or not we can continue to take off is a completely different question, but I do think at this point we are at the very least going to start looking for some type of squeeze.

If we were to break down below the massive candlestick from the Monday session, it is possible that we could go looking to reach the ¥160 level underneath, which is a major round figure, and an area that we had pulled back from before bouncing again. If we were to break down below the ¥160 level, then it is possible that we could go to the ¥157.50 level after that, which was a major resistance barrier previously, as the 50 Day EMA has sliced through there.

Keep in mind that this pair is highly sensitive to the risk appetite overall, so if we start to see stock markets take off to the upside, then it is possible that we could go higher. On the other hand, if we start to see a rush towards safety, we could see this market fall apart. That being said, the Bank of Japan has continued to do quantitative easing, which of course has flooded the market with both yen, which is clearly shown on the chart.

GBP/JPY Price Forecast Video 13.04.22

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