GBP/JPY Price Forecast – The British Pound Pulls Back From ¥165
British Pound vs Japanese Yen Technical Analysis
The British pound initially tried to rally during the trading session on Tuesday but gave back a bit of gain rather quickly at the ¥165 level. The ¥165 level is an area that’s been noisy for a while, and the massive reversal that we have seen during the trading session shows just how much trouble there is out there for risk appetite assets. Breaking through the ¥162.50 level is negative, but I would also point out that there is a “squishy area of support” in this general vicinity, that extends down to the ¥160 level. The ¥160 level is much more important to me, because I think at that point you can start to talk about the trend breaking apart.
On the upside, if we could turn around a break above the ¥165 level, then it’s likely that we will go back toward the high again. That being said, there seems to be a lot of fear and volatility out there, so regardless of which direction you are placing a trade in, the most important thing you can do is keep your position size reasonable. You could lose a lot of money rather quickly in this type of environment, so I would not go “all in” on a trade.
The fact that we turn around so violently does suggest to me that we probably have more negativity ahead of us. The ¥160 level will be crucial, especially if the 200 Day EMA can get there while Price does. I don’t know that it will beat price to that level, but it gives you an idea of just how important that pullback could end up being for the longer term.
GBP/JPY Price Forecast Video 06.07.22
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This article was originally posted on FX Empire
