GBP/JPY Price Forecast – The British Pound Breaks Above the 50 Day EMA

British Pound vs Japanese Yen Technical Analysis

The British pound has rallied quite a bit against the Japanese yen, breaking above the 50 Day EMA. By doing so, the market looks as if it is trying to figure out whether or not we are going to have risk appetite or not. After all, the pair is highly sensitive to risk appetite, and therefore you need to pay close attention to how other markets are behaving. For example, if the stock markets and everything else start to rally again, then you have a good shot at this market rising.

On the other hand, if we see the markets struggle, then it makes quite a bit of sense that we would see this market reach to the lower bound, grabbing the Japanese yen is a safety currency. The 50 Day EMA will attract a certain amount of attention, just as this area should cause people looking for exhaustion as well. Keep in mind that there was a head and shoulders pattern previously the major pattern that people were following, and the neckline is right around this general vicinity. Because of this, I would anticipate that there is quite a bit of “market memory” just waiting to happen.

If we do break down, the ¥157.50 level would be an area that could be a target, perhaps even the 200 Day EMA. The 200 Day EMA obviously is something that attracts a lot of attention by longer-term traders, so you need to keep that in the back of your mind, paying close attention to what happens next in that general vicinity. Ultimately, I am looking for selling opportunities.

GBP/JPY Price Forecast Video 24.05.22

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This article was originally posted on FX Empire

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