GBP/JPY Forecast – British Pound Pulls Back

GBP/JPY Forecast Video for 15.12.22

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit during the trading session on Wednesday as the market continues to be very choppy. Ultimately, the 50-Day EMA underneath could offer a bit of dynamic support, as is quite often the case. If we were to break down below the 50-Day EMA, then the market could go down to the ¥165 level. The ¥165 level is an area that has been important multiple times, so at this point I suspect that there would be a lot of interest.

On the other hand, if we break above the top of the candlestick for the trading session, it’s likely that we could go looking to the ¥168.50 level. If we can get above there, then it’s likely that the market could really start to take off, perhaps reaching the ¥170 level. However, the market has been very noisy along the way, so I would not think that it’s going to be an easy route. In this environment, the one thing that you can probably take heed of is the fact that every time we have fallen, we have seen buyers. However, as we form a massive “W pattern”, it’s also clear that the market has struggled to find any type of real clarity.

I do believe that we continue to see a lot of choppy and noisy behavior, with an eye on eventually trying to reach that ¥170 level. Pay attention to bond yields around the world, because as interest rates rise, the Japanese have to print more yen, which of course puts upward pressure on this market. On the other hand, if interest rates start to fall again around the world, then it’s likely that this pair will fall right along with it.

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