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GBP/JPY Weekly Price Forecast – British Pound Plunges for the Week

·2 min read

British Pound vs Japanese Yen Weekly Technical Analysis

The British pound has fallen rather hard during the course of the week, specifically on Friday to reach down to the ¥162.50 level. At this point, the market could plunge down to the ¥160 level, an area that has been important previously. With this being the case, the market is likely to continue seeing a lot of volatility, especially as there are a lot of concerns when it comes to global growth. Remember, despite the fact that the Bank of Japan is doing everything it can to buy every bond issued in Japan, thereby essentially “printing yen”, the reality is that this is still a very risk sensitive currency pair.

Now that we’ve seen this move, would not surprise me at all to see the pair try to get back down to the ¥160 level, an area that has been supported in the past. Ultimately, I think this is a situation where you have a market that is trying to figure out what to do next, but when you look at the longer-term jar, you can clearly see that we are still very much in an uptrend and I think that will remain. That being said, if we were to break down below the ¥155 level, then I could be convinced otherwise, but that is 750 pips from here.

Buying the dip probably works, but you may have to step out of the way for a few days before you get some type of opportunity. Furthermore, you probably need to drill down on smaller time frame such as the daily chart in order to fine-tune your entry, but clearly we’ve been very bullish for some time.

GBP/JPY Price Forecast Video 04.07.22

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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