British Pound vs Japanese Yen Weekly Technical Analysis
The British pound has rallied during the course of the week to test the highs again. Ultimately, the market looks as if it’s respecting the ¥165 level as support, and therefore short-term pullbacks to that area will probably continue to attract attention. After all, this has been a very strong uptrend, and therefore you need to pay attention to the fact that there will be plenty of buyers every time we dip. The ¥160 level has been an area where we had seen buyers at. Because of this, the market is likely to see a lot of buyers every time it dips, as the Bank of Japan continues to eviscerate its own currency.
However, do pay attention to the fact that we have formed a little bit of a triple top, so it shows just how much resistance there is above. If we were to break above the ¥168.50 level, then it opens up the possibility of a move to the ¥170 level. Longer-term, this is a market that has been bullish for multiple reasons, not the least of which the aforementioned Bank of Japan. After all, there has been a rush away from the end, and the interest rate differential continues to widen between these two currencies.
For a bit of a barometer, you need to pay attention to the USD/JPY pair, as it will tell you whether the Japanese yen is strengthening or weakening. The overall attitude of the market should continue to be one of volatility, but it certainly looks as if no matter what happens, there are people willing to come in and fight to the upside. Unless we get some type of financial meltdown or the Bank of Japan changing its attitude, it’s likely that there will be plenty of buyers on dips.
GBP/JPY Price Forecast Video 27.06.22
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This article was originally posted on FX Empire