British Pound vs Japanese Yen Technical Analysis
The British pound has fallen hard during the trading session on Monday to reach toward the crucial ¥162.50 level. That is an area where we had previously seen a lot of resistance, so it does make a certain amount of sense that it should offer support based upon “market memory.” Furthermore, it is a market that is highly sensitive to risk appetite around the world, so pay close attention to how other markets are doing. For example, the stock market suddenly starts to meltdown, more often than not the GBP/JPY pair will go much lower.
If we break it down below the ¥162.50 level, then the next potential target could be the ¥160 level. That scenario currently features the 50 Day EMA, which is a longer-term indicator that a lot of people will follow. Furthermore, the ¥160 level is a large, round, psychologically significant figure, and therefore will attract a lot of attention. If we were to break down below there, then the uptrend would be over, and we would probably see quite a bit of economic devastation.
The size of the last couple of candlesticks certainly suggests that something has changed in this market. Because of this, I am starting to develop a little bit more of a bearish attitude, but I would not necessarily “go all-in” on a short position at this point. It will be interesting to see how things play out on a bounce, because if the ¥165 level cannot be recaptured at this point, we may start to see quite a bit of negative pressure.
GBP/JPY Price Forecast Video 25.04.22
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