The British Pound Breaks the ¥165 Barrier During the Week

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has rallied rather significantly during the course of the trading week to break above the ¥165 level. By doing so, the market looks as if it is ready to make yet another shot higher, and therefore I think that pullbacks will be thought of as buying opportunities. The market will continue to look at this through the prism of risk appetite as well, so make sure that you see the overall risk appetite in other markets as a secondary indicator.

The ¥160 level is the “floor in the trend” from what I can see, and therefore as long as we can stay above there I have absolutely no interest whatsoever in trying to short this market. Quite frankly, although the market is overdone, I just do not see an intelligent way to short this market and fight this type of momentum. Because of this, I am simply looking for dips to buy, or by an extension that happens.

If we do break down in this market, it will be some type of major “risk-off event” that will be obvious when you see it. Unless something drastic happens, or perhaps the Bank of Japan changes its overall attitude, I just do not see how this market will change its overall momentum. Eventually, the parabolic nature of the move may cause a pullback, but that should be thought of as a nice opportunity. With this being the case, I am looking for value and I plan on taking advantage of it. In fact, shorting the Japanese yen against almost everything seems to be the best trade in Forex at the moment, and it shows no signs of slowing down.

GBP/JPY Price Forecast Video 18.04.22

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