It is not the time for the Yen to continue to strengthen as it depreciates to hover again at its April 2019 lows after showing strong gains last week.
The yen remained weak following expectations that the Bank of Japan (BOJ) remained committed to maintaining policy rates even though most central banks had already begun planning to implement ‘tapering’ measures.
It seems that the Pound is taking another chance to strengthen against the Yen despite still facing pressure from a statement by European Internal Market Commissioner Thierry Breton.
Looking at the price chart of the GBP/JPY pair, the price movement is seen to have surpassed 100 pips from the resistance level of 156,000 to refute the previous bearish trend.
The price spike also seems to continue to test the SBR (support become resistance) zone of 158,000 before declining again at the end of the session until it continues to the trading session today (Wednesday).
If the Yen once again gives a surprise to regain strength, last week's resistance level at 156,000 is expected to be tested before investors assess the reaction to the movement at that level.
The RBS (resistance become support) zone of 155,000 is expected to be reached if the price decline manages to continue a clearer downward trend until it breaks the resistance level.
If the bullish trend presented this time is maintained, it is not impossible for the price to continue to rebound as well as reach the SBR zone of 158.000 and test the highs around 158.300.
A more aggressive bounce will see the price try to record a recent 5 -year high and will likely be able to head into the resistance zone at 160,000.
