Yahoo Finance GBP/JPY Price Forecast – The British Pound Has Broken Down Significantly Against Yen
British Pound vs Japanese Yen Technical Analysis
The British pound has broken down significantly during the trading session on Wednesday, as we are well below the ¥162.50 level. At this point, the ¥160 level underneath is an area that a lot of people will pay close attention to, which is a large, round, psychologically significant figure. Furthermore, it’s an area that we have seen a bit of support in previously, and therefore I think it’s only a matter of time before buyers come back in. However, if we were to break down below the ¥160 level, it’s likely that the market could start to drop rather significantly.
Alternatively, if the market were to turn around and show signs of life, we could see the market try to take out the ¥162.50 level, and then perhaps the ¥165 level. With this being the case, the market is likely to continue to see a lot of volatility, as the pair is highly sensitive to risk appetite. In this environment, risk appetite is a very fleeting thing, so it’s not a huge surprise to see that we have been all over the place.
Ultimately, this is a market that I think is going to be very difficult to hang on to, but if we were to break down below the ¥160 level, then I think the market starts to get aggressively short. This is a bit of a stretch though, because the Bank of Japan continues to work against the value of its own currency due to driving yields down. As long as they continue to buy bonds, that could cause issues.
GBP/JPY Price Forecast Video 07.07.22
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This article was originally posted on FX Empire
