GBP/JPY Price Forecast — The British Pound Continues to Go Sideways

British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Thursday as we continue to see a lot of noisy behavior. Ultimately, the world is trying to figure out what central banks are going to do, and therefore what Jerome Powell is going to say on Friday. Between now and then, I would not expect much, this is a market that is more likely than not going to be very noisy.

It is still technically in an uptrend, but it’s worth noting that we have been slumping as of late. I believe that the ¥160 level continues to offer significant support, so we need to pay close attention to it. This is especially true now that the 200-day EMA has approached that same area.

Keep in mind this pair is highly sensitive to risk appetite, and there will be risk appetite flying all over the place in one direction or the other on Friday. In other words, I fully anticipate that the candlestick on Friday is probably going to have a pretty wide range. The ¥162.50 level above is resistance, so if we can break above that level it’s likely that we could continue to see a continuation of the upside, perhaps opening up the possibility of a move all the way to the ¥165 level.

That obviously would be very bullish, and it’s an area where we’ve seen a bit of resistance in the past. One thing is for sure, the market is compressing and ready for a bigger move, especially as we are between the 50-day EMA and the 200-day EMA, so a lot of traders are waiting to see what to do next.

GBP/JPY Price Forecast Video for 26.08.22

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