Yahoo Finance GBP/JPY Price Forecast – The British Pound Pulls Back to ¥165
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen hard during the trading session on Thursday to slam into the ¥165 level. However, it does look like the market is trying to hang on to this area, so it’ll be interesting to see if we get enough support to turn things around. Even if we were to break down below here, I think it’s likely that we will eventually see buyers below, perhaps at the 50 Day EMA.
Looking at this chart, it makes quite a bit of sense that we would see more back-and-forth action, and some people will be looking at the most recent action as a “triple top”, although the reality is that the fundamentals still work against the Japanese yen overall. After all, the Bank of Japan has been doing everything it can to fight rising rates, which is the same thing as quantitative easing. In this scenario, the Japanese yen continues to get hammered against almost everything, as you not only have the interest rate differential, but you also have the fact that the Japanese yen has been sold off against almost everything.
If and when we can finally break out to the upside, it’s very likely that the GBP/JPY pair could go looking to reach the ¥170 level, possibly even the ¥175 level. That being said, this is also a pair that is highly influenced by the noisy behavior of risk appetite, which is all over the place at the moment. Remember that the Japanese yen is considered to be a safety currency, so that does come into play occasionally. However, the dynamics have been thrown on their head as of late.
GBP/JPY Price Forecast Video 24.06.22
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This article was originally posted on FX Empire
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