GBP/JPY Price Forecast – The British Pound Has a Volatile Day
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen rather hard during trading on Thursday after the interest rate decision, but at this point, it looks as if it is trying to stabilize itself. Whether or not it holds is a completely different question, but it looks as if the ¥160 level is the floor in the market that everybody’s been looking to. As long as we can stay above there, the parent does have the potential to stay afloat. That being said, the market is worth paying close attention to, because it’s a great barometer on risk appetite in general. At this point, it’s very unlikely that it shoots straight up in the air. Unless of course, people start focusing on the Bank of Japan again.
It is probably worth noting that the Bank of Japan continues to fight interest rates pegging the JGB ten-year at 0.25%. As long as that’s the case, it’s tantamount to “printing yen.” That’s the one thing that could save this pair. Ultimately, I think the rally will probably be somewhat short in duration, but at this point, I envision this market more likely than not entering some type of trading range. Quite frankly, there are a lot of exhausted traders and accounts out there.
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If we were to break down below the ¥160 level, that opens up a move down to the 200 Day EMA, which is currently at roughly ¥157.50. On the upside, if we were to break above the ¥165 level, then it’s possible that we have a potential move to the highs again, but there are a lot of things going on that will continue to cause chaos.
GBP/JPY Price Forecast Video 17.06.22
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