If you look at the chart, the GBP/JPY pair has shown ‘fierce’ action as the Yen is seen continuing to decline to the lowest level ever reached since April 2019.
After just touching the strongest support zone around 149,000 in early October trading, the movement remained brilliant recording a jump approaching 500 pips as of today’s trading (Monday).
At today’s market opening, the price spike has also created the latest highs for 3 months and continues to destroy the most ‘immune’ highs to be broken at the 153,000 level.
The risk-on market sentiment that is shining in the financial markets at the moment is seen to have pushed most safe-haven currencies including the Yen to remain traded weak.
Deck as the Yen weakened, the Pound continued to take advantage and opportunity to record a strengthening and drive the GBP/JPY price skyrocketing.
The pound continued to show dominance amid rising expectations following expectations that the Bank of England (BOE) would raise interest rates to curb soaring inflation.
A more aggressive upward pattern is likely to drive the price movement towards the next resistance zone around 155,000 that was once tracked at the end of June trading.
A more significant surge will see the price movement re -test the 156,000 resistance zone which has yet to fail to be broken over the 3 -year period since January 2018.
Meanwhile, if the price plummets again, the previous resistance zone which changed into the RBS (resistance become support) zone of 153.000 will be tested to make the latest HL (higher low).
The lower price decline is expected to head into the further RBS zone at 152.000 and will signal to investors for the GBP/JPY price movement to make a trend change.
