Since our last GBP/JPY analysis, the pair has demonstrated significant bullish behavior, maintaining levels above the important psychological threshold of 187.00. The higher than expected GBP CPI last week gave the pair a boost, GBP/JPY has remained resilient, indicating persistent bullish sentiment.
Technical analysis: GBP/JPY is now experiencing a pullback after a notable uptrend, with the pair consolidating between the support turned resistance level near 187.40 and the resistance its trying to break at 189.00. The formation of higher lows and higher highs remains indicative of a strong uptrend, but the currency pair must overcome the current resistance to signal the continuation of its rally. With the Bank of Japan's rate decision on the horizon, there is potential for heightened volatility. As long as it doesn’t break its current support zone swell as the bullish trendline, we are looking of buys.
Our position: We continue to hold a favorable view of GBP/JPY, seeking opportunities to buy, especially near the significant support levels. The market's response to the upcoming rate decision will be pivotal in determining the pair's near-term direction. A decisive move above 188.00/189.00 could confirm the trend's strength, while inability to breach this level may lead to a consolidation phase or a retest of lower support zones.
Technical analysis: GBP/JPY is now experiencing a pullback after a notable uptrend, with the pair consolidating between the support turned resistance level near 187.40 and the resistance its trying to break at 189.00. The formation of higher lows and higher highs remains indicative of a strong uptrend, but the currency pair must overcome the current resistance to signal the continuation of its rally. With the Bank of Japan's rate decision on the horizon, there is potential for heightened volatility. As long as it doesn’t break its current support zone swell as the bullish trendline, we are looking of buys.
Our position: We continue to hold a favorable view of GBP/JPY, seeking opportunities to buy, especially near the significant support levels. The market's response to the upcoming rate decision will be pivotal in determining the pair's near-term direction. A decisive move above 188.00/189.00 could confirm the trend's strength, while inability to breach this level may lead to a consolidation phase or a retest of lower support zones.