Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

What Lies Ahead For The GBP/JPY Pair?

By BlackBull MarketsForexMay 19, 2022 08:37PM ET
What Lies Ahead For The GBP/JPY Pair?
By BlackBull Markets   |  May 19, 2022 08:37PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Most traders are aware of the rout that the US dollar is carving into the Japanese yen and the British pound. Since the beginning of March 2022, the USD has appreciated against the yen by 11% and 7% against the pound.

Naturally, with their respective performances against the USD, the pound has strengthened against the yen since the beginning of March. Let us take a look at the technical and fundamental perspective of the GBP/JPY pair moving forward.

GBP/JPY: The Daily Perspective

Some long candles have recently begun presenting themselves in the GBP/JPY daily chart, pushing and pulling this pair across a significant range over each trading session. This week, GBP/JPY has swung between 156.30 and 161.80.

As of writing, the GPY/JPY is trading at 159.200. This level aligns closely with a resistance level from three previous highs going back to October 2021. The GBP/JPY blasted through this resistance quite emphatically on March 22, and then slowly trended up to a peak of ~168.00 within a month.

Pessimism in the UK economy set in, as the Bank of England warned of a potential recession, and the GBP/JPY gave up a good chunk of gains. At the same time, the pound hit a 2-year low against the greenback.

Even so, traders are still aware of the ultra-accommodative policy of the Bank of Japan. Thus, any potential dovishness from the Bank of England in response to the fear of recession is unlikely to reach the levels exhibited by the Bank of Japan. This fundamental factor may help to morph the 158.00 level, once a persistent resistance level, into a firm level of support moving forward.

GBP/JPY daily chart.
GBP/JPY daily chart.

GBP/JPY: The 2-Hour Perspective

In the short-term, we might expect some range-bound trading in the GBP/JPY. The Average True Range indicator, on a 2-hour chart, shows weak buying and selling pressure. A bias for a tight range between 158.00 and 162.00 might be desired for a GBP bull. A bear may extend that lower bound down to 155.00 in substitution for 158.00.

GBP/JPY 2-hour chart.
GBP/JPY 2-hour chart.

What Lies Ahead For The GBP/JPY Pair?

Related Articles

Kenny Fisher
Euro Tumbles To 20-Year Low By Kenny Fisher - Jul 05, 2022

The euro enjoyed a quiet Monday, as the currency markets were calm with U.S. markets closed for a holiday. The euro started the Tuesday session without incident, but the roof fell...

Al Brooks
EUR/USD: Bears Break Below 2017 Low By Al Brooks - Jul 05, 2022

    The EUR/USD broke below the 2017 low during the overnight session. This is a bear breakout of the past two months. Bears want a successful bear breakout and measured move down...

What Lies Ahead For The GBP/JPY Pair?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email