GBP/JPY Weekly Price Forecast – British Pound Plummets Against Yen After Initial Rally

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has initially tried to rally during the trading week but found enough resistance above the cause problems. At this point, the Japanese yen is strengthening mainly based upon the fact that interest rates around the world are dropping. After all, it keeps a lot of the pressure on the Bank of Japan if rates are rising, because they are focused on their 0.25% yield curve control on the 10 year note. Because of this, they have to throw “unlimited yen” into the markets, and therefore the currency gets hammered.

The markets have been punishing them for a while, but now that we are focusing on the fact that inflation did come in a little under what was anticipated in America, all the sudden inflation has been beaten. (Sarcasm.) Nonetheless, that’s what markets are behaving like now, so there is a bit of a readjustment going on. I think that sooner or later the Japanese yen gets sold off again, and despite the fact that we have had such a negative couple of weeks, the trend is still very much intact.

With that in mind, I’m simply looking for opportunities to pick up the market at lower levels, because quite frankly it’s difficult to imagine how things have changed over the longer term based upon one announcement. I also suspect that it is probably only a matter of time before Fed speakers come out and crush the markets enthusiasm. With that being the case, I think we continue to see the Japanese yen gets sold off but stepping out of the way for the moment might be the best way.

GBP/JPY Price Forecast Video for 14.11.22

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