The British Pound Pulls Back From a Major Resistance Level Against Yen

British Pound vs Japanese Yen Technical Analysis

The British pound has pulled back a bit from the ¥165 level, an area that has been important multiple times over the last several years. Because of this, the market ran into a bit of a brick wall, but at this point, it is still obviously very bullish. The question now is whether or not it can break through there? I do think it is very likely given enough time, but we may have to pull back rather significantly in order to build up enough momentum. The ¥162.50 level is a potential support level, as it has been resistant in the past.

If we were to break down below there, the market could go looking to the ¥160 level, an area that of course has offered support previously and is a large, round, psychologically significant big figure. Ultimately, this is a market that has been very bullish, but it may have been a bit overdone. Because of this, a pullback is probably the healthiest of outcomes, because quite frankly a market cannot go straight up in the air forever.

If we do break above the ¥165 level, then this is a market that would be a “buy-and-hold” type of situation, and it could lead to a multi-month, or perhaps even multi-year trade. That being said, it would become more or less investment, and not necessarily a trade. Because of this, I am very interested in the ¥165 level, as will most of the Forex traders around the world be. At this general intersection, we are about to make a big decision for the long term.

GBP/JPY Price Forecast Video 15.04.22

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