The Yen stylishly displayed a strengthening despite a slight slow reaction amid the release of manufacturing PMI data in Japan for an encouraging September.
As a result, the Pound plummeted slightly after being on the deck for so long due to statements by HIS Markit chief economist Chris Williamson as well as the surge in Covid-19 infection cases in Britain.
Market sentiment which is seen as still risk-averse continues to attract investors to realize positive movements to safe-haven currencies including the USD and Yen to stand out.
At a time when the Yen is outperforming the Pound, it has resulted in the price on the GBP/JPY chart continuing to decline over 200 pips from its high of 158.200.
The price movement has also managed to pass the resistance level of 157,000 and it can be observed that the price continues to rebounce at the resistance level of 156,000 to form the latest LL (lower low) pattern.
During the European session today (Monday), the price seems to be rising which may want to just test the Moving Average 50 (MA50) barrier level in the 1 hour time frame to make LH (lower high) anyway.
A significant decline will see the price movement on the GBP/JPY chart to once again test the resistance level of 156,000 first before expectations will decline to lower levels.
If the bearish trend continues to break below the 156,000 level, the price is expected to reach the next focus zone at the RBS (resistance become support) zone of 155,000.
But on the other hand, if the price movement manages to show excellent action again as before, it is likely to see the price test the 157,000 level again before flying higher.
Higher flights will see prices retry the 5 -year high record set last week and will likely be able to head for a further resistance zone at 160,000.
