British Pound vs Japanese Yen Technical Analysis
The British pound has rallied a bit during the trading session on Tuesday as we continue to see this pair bounce around the same area. Ultimately, this is a market that I think needs to determine where the next move is before you get involved. The market breaking down below the ¥162.50 level could push this market down to the 50 Day EMA. The 50 Day EMA is just above the ¥160 level, which is an area that a lot of people would be paying close attention to. If we were to break through that level could very well send the market much lower.
There are plenty of wicks just above that showed that it is going to be difficult to break above there, but if we did then we could open up the possibility of a move to the ¥165 level. Keep in mind that the pair is highly sensitive to risk appetite, so you need to be aware of what is going on around the markets overall, and if we are starting to see the markets shift in one direction or the other as far as risk appetite is concerned, then you will see that play out here.
The Japanese yen is a safety currency, while the British pound in this equation would be more or less a “risk-on” type of asset. The market looks as if it is trying to figure out what to do but it is also worth noting that we had seen a lot of long negative candlesticks recently, and those typically do have a bit of follow-through.
GBP/JPY Price Forecast Video 04.05.22
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