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GBP/JPY Price Forecast – The British Pound Continues to Chop Around

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British Pound vs Japanese Yen Technical Analysis

The British pound has gone back and forth during the trading session on Monday as we continue to hover above the ¥165 level. The market looks as if it is trying to break through that recent barrier near the ¥168.50 level, but currently is simply building up the pressure more than anything else. It looks like buyers are willing to come back into the market near the ¥165 level, so pay close attention to it.

The Bank of Japan continues to fight rising interest rates through quantitative easing, being one of the very few central banks in the world doing so. Because of this, the Japanese yen will continue to struggle against most other currencies, the British pound included.

If we were to break down below the ¥165 level, then it’s possible that we could drop to the 50 Day EMA, maybe even the ¥162.50 level. I do anticipate that there would be a lot of support there, but the overall trend is defined at the ¥160 level underneath, where we had bounced from so significantly just a couple of weeks ago. Furthermore, it is a large, round, psychologically significant figure, and therefore a lot of people will pay close attention to it anyway.

The one thing that could work against this pair is if we see a lot of panic trading, meaning that people are jumping into the Japanese yen for safety. That trade has gone away a bit though, as the bond yields in Japan or just simply not enough to keep up with inflation. Because of this, the market will continue to see a lot of noisy behavior.

GBP/JPY Price Forecast Video 28.06.22

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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