British Pound vs Japanese Yen Technical Analysis
The British pound rallied significantly during the trading session on Monday to break above the ¥165 level, which of course is a sign of strength. At this point, the market is likely to go looking to the ¥168 level. Alternatively, this is a market that has a lot of volatility, which is typical for this pair. Ultimately, this is the market that I think also is paying attention to the 50 Day EMA underneath and rising.
The size of the candlestick is rather impressive, so you should pay attention to that as well. After all, shows a certain amount of impulsiveness, and that typically is a good sign that we are more likely than not going to see a little bit of follow-through. Whether or not we can break out to the upside is a completely different question, but as things stand right now, it looks like the market is at least going to make an attempt to do so.
Alternately, if we were to turn around and suddenly sliced through the 50 Day EMA, then we could have a scenario where the market then tests the ¥162.63 level. Breaking down below there then has the market testing the ¥161.50 level, and then possibly the ¥160 level where we would more likely than not be an area of interest as the 200 Day EMA should be approaching near the same timeframe. Ultimately, this is a market that continues to see plenty of buyers, and therefore you should only be looking at this through the prism of “buying on the dips.”
GBP/JPY Price Forecast Video for 19.07.22
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This article was originally posted on FX Empire