British Pound Continues to Reach Higher Levels

British Pound vs Japanese Yen Technical Analysis

The British pound rallied during trading on Wednesday to reach above the ¥163.50 level, as we see the British pound continued to show solid strength against the Japanese yen. Looking at this chart, it is pretty easy to see just how bullish this market is, but we are getting a bit overdone. Because of this, I am looking for pullbacks to occur, which could offer a bit of value. The ¥160 level is an area that I would anticipate as being crucial for support, and I do think that it is probably only a matter of time before we would see buyers step in if we did in fact reach that area.

On the upside, the ¥165 level appears to be a major resistance barrier, so if we were to break above there, I think that the British pound could have a very strong showing against the yen, perhaps opening up the possibility of an explosive longer-term “buy-and-hold” type of market. In that scenario, I think it starts to look more like an investment than anything else, and I would anticipate that it could kick off a major move for several months, if not years.

This pair does tend to move based upon risk appetite, so pay close attention to that. Ultimately, this is a market that I think will continue to be very noisy, but it certainly looks as if we are trying to figure out where to go next. I think given enough time, we could probably have an explosive move, but I just do not see it happening right away. I believe there is far too much in the way of an overextension for that to happen easily.

GBP/JPY Price Forecast Video 14.04.22

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