British Pound vs Japanese Yen Technical Analysis
The British pound has broken down significantly during the trading session on Friday, as we continue to see plenty of volatility in this market. The ¥165 level is an area that a lot of people will pay close attention to, as it was previous resistance. “Market memory” could step into the picture, offering a bit of support, but if we break it down below here we likely go looking to reach the ¥162.50 level. This is an area that had previously been resistance as well, and of course, the ¥160 level underneath there is a large, round, psychologically significant figure, and an area where the 50 Day EMA is currently crossing.
The size of the candlestick does suggest that we are going to get a little bit of follow-through, but that is not necessarily an opportunity to start shorting. Quite frankly, this is a market that is going to continue to see a lot of buying pressure underneath, so I think it is probably only a matter of time before we have that type of situation come into the picture. Because of this, I am waiting for a supportive candlestick to get involved with, perhaps on the daily timeframe.
It is not until we break down below the ¥160 level that I would be concerned about the overall trend. Keep in mind that we have recently broken through major resistance, and therefore it does suggest that there should be plenty of buyers going forward. Whether or not that plays out is a completely different question of course, but at this point, it certainly looks to be the most likely of outcomes.
GBP/JPY Price Forecast Video 25.04.22
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