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GBP/JPY Price Forecast – The British Pound Continues to Volatile Move

·2-min read

British Pound vs Japanese Yen Technical Analysis

The British pound has gapped lower, turned around to rally rather significantly, and then fell hard. By doing so, the market is likely to continue seeing a certain amount of downward pressure, but it’s worth noting that the market has been very noisy, so therefore it makes quite a bit of sense that we continue to chop back and forth on short-term charts. With all of this noise, it’s difficult to get into a bigger position, let alone one that lasts for a significant amount of time.

The ¥160 level above is a previous support level that now acts as resistance. The 50 Day EMA sits just above there and is starting to slump lower, so that should also offer a significant amount of resistance as well. Ultimately, this is a market that is stuck between the 50 Day EMA and the 200 Day EMA, which typically means quite a bit of noisy behavior. With that being the case, we need to pay close attention to any signs of exhaustion after a rally, just as we would need to pay attention to any signs of support after breaking down toward the 200 Day EMA.

It’s also worth noting that this pair has a high correlation to risk appetite, and if risk appetite continues to wane, that will drive this pair lower over the longer term. The market will be very noisy, to say the least, so therefore you need to be cautious with your position size and pay close attention to other markets to give you an idea as to where we may be going. Unfortunately, this is a market that is showing very little in the way of clarity.

GBP/JPY Price Forecast Video 26.05.22

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This article was originally posted on FX Empire

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