What are the price movement expectations for the GBP/JPY currency pair which is a favorite of many traders out there?
The Pound Sterling is still trading risky in the market but current factors are seen to be able to support the British currency.
The reopening of the UK economy is seen as a positive sign with cases of viral infections also declining as vaccine distribution is actively channeled in the UK.
Against the Yen, signals for more dovish policy by the Japanese central bank continued to put pressure on the Yen in the market.
With the Pound more dominant, investors can see the bullish pattern displayed on the GBP/JPY chart since last week.
After testing the support level at 148.500 last week, the price has managed to make a rise up past the resistance of 152.00 continued on today’s trading.
After soaring in the Asian session, prices are expected to continue to rise higher in the next session following the report of Gross Domestic Product (UK) data for the last quarter of 2020 published with readings that are higher than expected.
If the price manages to surpass the high reached in mid -March around 152,500, the price will record the latest high of April 2018.
The next higher rise is likely to lead to the high of 154.00.
However, if the price plunges back from the resistance zone of 152.00, the decline is seen to return to this week's support level at 150.600.
The continued lower decline is likely to head back to the 148.500 support zone hit last week.
