InstaForex

October 18, 2021

GBP/JPY Continues to Fly Skyscraper, Yen's Weak Base!

 The Pound remains with its ‘fangs’ in showing dominance to drive the GBP/JPY price further up as the Yen is still sinking to its lowest level since April 2019.


As is well known, the Pound continued to record a strengthening deck due to a statement made by Bank of England (BOE) Governor Andrew Bailey on measures to raise interest rates.


The price movement on the GBP/JPY chart is seen to have jumped around 200 pips at the end of last week and as of October trading alone, the price has shown a surge of more than 800 pips.


Which is where the price increase recorded has also broken the most ‘immune’ wall in the past at the 156,000 level to make the latest high level for 5 years since June 2016.


The price movement trend seems to remain bullish as the price is still trading above the Moving Average 50 (MA50) barrier level in the 1 -hour time frame despite the price declining slightly in today's trading session (Monday).


A more drastic uptrend is likely to drive the price towards the initial resistance zone which is further at the 158,000 level which the zone has tested before.



Meanwhile, if the price movement continues to excel recording a higher uptrend will see the price test the level of 160,000 and next will record the latest highs again.


If the price returns to show a decline, the resistance zone that previously turned into the RBS (resistance become support) zone of 156,000 will be tested to make the latest HL (higher low).


The lower price decline is expected to hit the RBS zone further at 155,000 and will give an indication to investors for price movements to make trend changes.