Why GBP/JPY Did Not Continue To Rise After The May 27 Surge? - Kakiforex.com - Financial Market Media No. 1 in the World Why GBP/JPY Did Not Continue To Rise After The May 27 Surge? Why GBP/JPY Did Not Continue To Rise After The May 27 Surge?

June 9, 2021

Why GBP/JPY Did Not Continue To Rise After The May 27 Surge?

 What has happened to the price movement on the GBP/JPY currency pair chart?


The average investor expressed frustration when expectations for prices to continue to soar seemed to falter.


This is a follow -up to the price spike on May 27 which saw the price jump 200 pips from the price level of 154.00 to a high of around 156.00, the latest highest level since January 2018!


However, the decline was seen again to the level of around 154.800 in the price support zone until trading resumes this week.


Previously, investors were optimistic for the price to continue the bullish trend with positive developments regarding the UK's plan to loosen movement restrictions for the purpose of reopening full economic operations on June 21.


Nevertheless, the bearish pattern is increasingly displayed although it is still not very clear signal for the price to start a bearish trend.


Putting pressure on the Pound, concerns of the Covid-19 variant in the UK are seen to slow down the UK’s economic recovery and even the date of full economic operation of June 21 is likely to be postponed to July 5.



This will push the price lower on the GBP/JPY chart if the movement of the Yen is also more stable in the market.


For a decline expectation below the 154.800 zone, the price is seen to be heading back to the 153.900 level which has managed to support the price from falling lower during last May’s trading.


Prices that move below that level will expect a lower price decline and can reach back to the level around 132.00.


On the other hand, if investors return to see a rebound in prices, the previously reached high of 156.00 is a price point that needs to be tested again.


Passing that high will continue to record the latest 3 -year high with resistance of 156,500 seen as the nearest focus level.