GBP/JPY Price Forecast – British Pound Continues to Consolidate Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back just a bit to kick off the trading session on Friday but has also found enough support underneath to keep things going. At this point, it looks like we are trying to consolidate after breaking through a major resistance barrier in the form of the ¥168 level. A pullback from here also opens up the possibility of an attempt to get down to the ¥165 level, but at this point it looks like the market is more comfortable simply going sideways. This does make a certain amount of sense as we would be catching a bit of a breather in order to work off some of the excess froth of the most recent move.

At this point, I don’t have any interest in shorting this pair, although I do have some serious concerns about the British pound itself. Ultimately, I think we’ve got a situation where the market is probably going to be more back and forth in the short-term, but eventually go looking the higher levels as the Bank of Japan continues to buy unlimited bonds.

As long as they are engaged in quantitative easing, the Japanese yen will be threatened by just about everything. That being said, the British pound has its own issues, so I think this will be one of the last pairs to take off against the yen, at least in the short term. Pay close attention to the USD/JPY pair, because it can give you an idea as to how the Japanese yen is more likely than not to rise or fall as it is the most basic measurement of a currency strength, the US dollar.

GBP/JPY Price Forecast Video for 24.10.22

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