British Pound vs Japanese Yen Technical Analysis
The British pound has rallied rather significantly during the trading session on Tuesday again to show signs of life. We have pierced the ¥167 level, which is another sign of extreme strength. By doing so, the market looks as if it has absolutely no interest in slowing down, as the Japanese yen continues to meltdown.
This is an extraordinary move, and quite frankly one that makes me nervous. That being said, one thing that you need to keep in mind is that there will eventually be a pullback, and this one could be brutal. While I would not short this market, I would also not be overly surprised to wake up one morning and see that it had dropped 300 points. Moves like this are not natural, and eventually, liquidity becomes an issue.
That being said, dips should continue to be buying opportunities, with the ¥165 level underneath being the most obvious support level. After that, then you have the ¥162.50 level, and finally, the ¥160 level, where the 50 Day EMA seems to be approaching. It is not until we break below the ¥160 level that I would be concerned about the overall uptrend. Quite frankly, there is nothing on this chart that even remotely suggests that we are going to go lower, so at this point in time I simply look at dips as buying opportunities and therefore I am not even looking at selling opportunities at this point. If we do get a massive selloff, I anticipate that most people will look at it through the prism of a potential buying opportunity. Buckle up, things are about to get very noisy.
GBP/JPY Price Forecast Video 20.04.22
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