GBP/JPY Price Forecast – The British Pound Continues to Test ¥165

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit during the trading session on Thursday to test the ¥165 level again, an area that has been important over the last couple of weeks. That being said, if we were to break down below the ¥164.50 level, we probably have further to fall. Ultimately, think we would go looking toward the 50 Day EMA, and then possibly the ¥162.50 level after that.

Keep in mind that this pair is highly sensitive to risk appetite, so that could be worth paying attention to. On the other hand, if we bounce from here, then we will more likely than not will continue to reach the one that hundred ¥68.50 level again. The British pound continues to rally against the Japanese yen not so much on risk appetite, but more on the idea of the Bank of Japan doing everything it can to keep interest rates down in that country. In other words, they are printing currency, which obviously is bad for the supply/demand equation.

If we break out above the recent highs, then obviously the market will continue the overall “buy-and-hold” attitude, perhaps reaching the ¥170 level. On the other hand, if the ¥160 level were to be broken somehow, and that’s over 500 pips from where I’m looking at currently, then it could change the entire trend. Until that happens, and probably due to something the Bank of Japan does, I have no interest whatsoever in shorting this market anytime soon. Buying on the dips continues to look like the best strategy.

GBP/JPY Price Forecast Video 01.07.22

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