British Pound Sits at the 50 Day EMA Against Yen
British Pound vs Japanese Yen Technical Analysis
The British pound has done very little during the trading session on Friday as we are hanging around the 50 Day EMA. Ultimately, this is a market that looks like it is trying to find some type of support, and it currently seems to look at the ¥160 level as a potential area of that support. I would also point out that you could be looking at a potential head and shoulders pattern, but it is probably a little early to call that.
That being said, if we were to break down below the ¥149 level, then I would consider the head and shoulders pattern kicked off, and we would more likely than not drop quite drastically. The “measured move” could be as low as ¥153 at that point. On the other hand, if we turn around a break above the top of the candlestick for the Friday session, the market could go looking to reach the ¥164 level yet again, as it has been a bit of a magnet for the price, at least over the last couple of weeks.
It is worth noting that the biggest candlesticks that we recently printed have all been negative and that generally tells you what the market is thinking. There certainly seems to be a lot of “risk-off behavior” out there, which of course will drive this pair lower. The Bank of Japan continues to fight interest rates in that country, so that is part of what we are seeing when it comes to yen weakness, but the Bank of England has just stated that the UK is almost certainly heading into a recession.
GBP/JPY Price Forecast Video 09.05.22
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This article was originally posted on FX Empire
