GBP/JPY Price Forecast – The British Pound Falls Drastically

British Pound vs Japanese Yen Technical Analysis

The British pound has fallen rather hard against the Japanese yen during trading on Thursday, as we have seen a significant “risk-off” attitude. Because of this, it does make a certain amount of sense that the Japanese yen has picked up a bit of strength, as we have tested the ¥157 area. Furthermore, the 200 Day EMA sits just below, and it looks as if it is trying to offer support if we break down.

The most recent move has been an extension of the negativity that we had seen previously, so it makes sense that we would continue to see this type of disaster. That being said, the market will almost certainly bounce given enough time, and therefore it is likely that we will see an opportunity to sell this market after some bounce. This is not to say that you should step in and start buying because even if we see a nice bounce, the ¥160 level above should be a massive resistance barrier.

If we continue to fall, then it is possible that we could see the market go down to the ¥155 level, but at this point, it is tough to know this market is getting down there without at least seeing a bit of a fight. Ultimately, this pair is susceptible to risk appetite as the Japanese yen is considered a safe currency. Of course, we have the ripples of fear running through all markets, so as a result, we have seen many traders run back to the Japanese yen. As long as there are a lot of concerns, we could see a significant amount of pressure to the downside.

GBP/JPY Price Forecast Video 13.05.22

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This article was originally posted on FX Empire

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