InstaForex

September 23, 2021

Can Bullish Early Signals Push GBP/JPY Higher Ahead of BOE Meeting?

 The price movement on the GBP/JPY currency pair chart is seen to be flat as both the Pound and Yen are assessed as risky by investors this week.


The yen is expected to continue to move weak in the market following the results of Japan’s central bank policy meeting yesterday indicating that loose policy will continue to be maintained by the Bank of Japan (BOJ).


As for the Pound, investors are awaiting the outcome of the meeting of the central bank of England (BOE) in the European session today at 7.00 pm Malaysian time.


The movement of the Pound is also seen to be limited with the vigilance of investors expecting the outcome of the BOE meeting to have a big impact in the market.


The GBP/JPY price chart has seen a decline in the price earlier in the week from the 151.00 level which was the price support zone in the previous week's trading.


The decline has reached the latest support zone around 149.00 which is an important zone to curb falling prices after being tested several times since last March.


As well as this week, the price is still holding above the zone with the upside blocked at the resistance level of 150.00.



There are early signals for a bullish trend change after the price moves back above the Moving Average 50 (MA50) support level on the 1 -hour time frame, however it is still early to determine the direction of further price movement before the meeting results are announced.


A price increase that manages to cross the 150.00 level will give a clearer signal for an upward movement if a hawkish statement is delivered by the BOE thus triggering a surge of the Pound.


The continued rise is expected to retest the 151.00 resistance which is in the SBR (support become resistance) zone.


However, if the BOE decides not to follow in the footsteps of the Federal Reserve (Fed) to tighten policy, the price on the GBP/JPY chart will make a decline again testing the 149.00 support zone.


A lower decline below the support zone will record the latest low for the 7 -month trading period.