British Pound vs Japanese Yen Technical Analysis
The Pound sterling fell quite sharply during Thursday’s session after the interest rate decision, but at this point it looks like it is trying to stabilize. Whether or not this holds is a completely different question, but it seems that the ¥160 level is the market floor that everyone is looking for. As long as we can stay above, the parent has the potential to stay afloat. That being said, the market deserves special attention, as it is an excellent barometer of overall risk appetite. At this point, it is highly unlikely that he will shoot directly into the air. Unless of course people start focusing on the Bank of Japan again.
It’s probably worth noting that the Bank of Japan continues to fight interest rates pegging the 10-year JGB at 0.25%. As long as this is the case, it amounts to “printing yen”. It’s the only thing that could save this pair. Ultimately, I think the rally will likely be short-lived, but at this point I envision this market more likely to enter some type of trading range. Frankly, there are a lot of depleted traders and accounts.
If we were to break below the ¥160 level, it would open a move towards the 200-day EMA, which is currently around ¥157.50. On the upside, if we were to break above the ¥165 level, we may have potential movement to the highs again, but there is a lot going on that will continue to wreak havoc.
GBP/JPY Price Prediction Video 17.06.22
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This article was originally published on FX Empire