Yahoo Finance GBP/JPY Price Forecast – The British Pound Has Broken Down Significantly
British Pound vs Japanese Yen Technical Analysis
The British pound has fallen significantly during the trading session on Tuesday to drop below the ¥160 level. The ¥160 level is a large, round, psychologically significant figure, and an area where we had seen a lot of noise previously. That being said, the market is likely to continue looking at this through the prism of choppy volatility, especially as there has been so much in the way of concern out there. I anticipate at this point we would more likely than not see a proclivity to fall, as risk appetite is quite noisy.
If we do turn around and rally, there is significant resistance to the ¥161 level, and then the ¥162.50 level. Any rally will end up being an opportunity to short again unless of course we somehow clear the ¥126.50 level on a daily close. With all of the concerns out there, it’s difficult to imagine a scenario where we suddenly see this market spike higher, as the overall concern of the global economy, stagflation, and other problems geopolitically will continue to put a bid on safety, such as the Japanese yen.
Either way, this is a market that I would probably avoid unless we get some type of rally that shows signs of exhaustion again on short-term charts. Underneath, the ¥157.50 level could be an area of support, or for that matter, a short-term target. I don’t like buying this market at all, at least not until something changes when it comes to risk appetite. In this scenario, you cannot get too excited about any position, because of all of the crosswinds that we have seen around the world.
GBP/JPY Price Forecast Video 25.05.22
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This article was originally posted on FX Empire
