Judging by the price chart of the GBP/JPY pair, the price movement has refuted the bearish trend displayed last week to return to give a clearer bullish signal.
The 149,000 support zone is still the zone to re-support the price spike and it is also the most difficult zone to penetrate despite having been tested many times since April 2021.
The bullish trend presented has also produced an increase of more than 200 pips to head back to the SBR (support become resistance) zone of 152,000 before declining again.
The Pound continued to be driven to strengthen and took advantage of the Yen’s safe-haven currency weakness despite still being at risk with rising gas prices in the UK.
The higher uptrend is likely to lead to the resistance level of 152,000 to record a 3-day jump in a row and record the latest HH (higher high).
A more significant surge will see the price movement re -test the 153,000 resistance zone which is still the previous focus zone to test.
Even so, investors need to be more vigilant if the market situation exhibits changes and the possibility for prices to plummet back down.
A lower price drop below the 151.000 level will signal for a change in the bearish trend and is expected to retest the RBS (resistance become support) 150.000 zone.
While a stronger support zone around 149,000 is still a level to watch out for if the price continues to decline.
