British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has fallen initially during the trading week against the Japanese yen, careening to the ¥160 level. However, we bounce from there quite violently as well, suggesting that there are still plenty of buyers out there. This is a pair that is highly sensitive to risk appetite so you need to keep an eye on that, and recognize that the market will more likely than not continue to have to be watched carefully. Not only will you have to keep an eye on this market, but you will have to keep an eye on other markets such as stock markets, bond markets, etc.
Looking at this chart, I would also point out that we are most certainly in an uptrend, so I still like the idea of buying dips but I also recognize that the Bank of England has changed its tune as of late, suggesting that they are going to continue to keep a lot of their balance sheet intact, meaning that they are switching to a slightly dovish stance all of the sudden. This has been reflected in the GBP/USD pair, and quite frankly the only reason this pair still has a bit of a bid to it is the fact that the Bank of Japan has gone full-bore quantitative easing.
That being said, it is probably worth watching the bottom of this weekly candlestick, because if it gets broken that could send this market much lower, signifying a massive shift in the overall risk sentiment. I do think that given enough time we will have to find some clarity, but as things stand right now, you still have to remain slightly bullish.
GBP/JPY Price Forecast Video 02.05.22
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