GBPJPY 1H Chart BoJ Interest Decision And Looking Ahead

OANDA:GBPJPY   British Pound / Japanese Yen
GBPJPY fell this morning as the Asian session ended weary of the the BoJ's interest rate decision and release of Inflation YoY. This, coupled with the pair showing early signs of exhaustion is creating great weather conditions for a storm. The pair fell short of the 154.000 mark and looks to consolidate ahead of the BoJ's decision before a small breakout above the previous resistance line of 154.500 back in May, which was broken by the bulls as they headed for the psychological level of 155. This was broken easily and GBPJPY began testing 156.

Since then GBPJPY has been on a slow downtrend in the hourly which showcased some of the early signs of exhaustion mentioned earlier. This is merely a break for the bulls as the markets watch and wait for the BoJ's decision. The pound has been holding its weight even after Johnsons announcement of the 'freedom day' delay back to the 19th of July. With the pound sitting strong amongst Johnsons delay and the Yen looking shaky ahead of the inflation and interest announcements, this only really shows to me that the test at 156 is coming thick and fast once the Yen's anticipation has decimated.

Looking ahead into next week, after some stabilisation and consolidation from todays drop, we're gonna see the pair push past previous resistances such as 154 and the psychological 155 and begin testing the 156 mark. The pair might meet some resistance at around 155.500 due to the downtrend angle and resistance points but I'm not imagining its gonna dent the push that the currency will make over next week as there is little fundamental factors in play over the next week for GBP until Thursdays BoE interest rate decision which will look to follow Jerome Powells Hawkish decision to bring hikes in around 2023, and the Yen will look again weary as the holding their own meeting minutes early in the week.

I look forward to hearing thoughts and I'm definitely riding with the bulls over the 1H frame this next week