The Bank of Japan’s (BOJ) different measures on monetary policy compared to other central banks have resulted in the Yen remaining stuck at a 3 -year low since April 2019.
As is well known, the BOJ is often keen to maintain its monetary policy easing with the growth and inflation scenario seen as still facing pressure in the country of the rising sun.
The Pound continued to take the opportunity to spread its wings in showing strength following the desire of the Governor of the Bank of England (BOE) to raise interest rates.
The price movement on the GBP/JPY chart seems to continue to carve a more drastic jump to re -test the 158,000 resistance zone and also set the latest 5 year high record!
At the opening of the Asian session today (Wednesday), prices were seen to have resumed gains before showing a slight decline at the start of the European session following a slightly weaker report of published UK inflation data.
The price also seems to have jumped over 100 pips in yesterday’s trading session (Tuesday) and is still trading above the Moving Average 50 (MA50) barrier level on the 1 hour timeframe to maintain the price bullish signal.
The aggressive upward pattern is expected to drive the price movement towards the higher resistance zone at 160,000 and further will once again record the latest highs.
If the price shows a plunge to lower levels, investors will see a decline towards the resistance zone of 157,000 before expectations reach the RBS (resistance become support) zone of 156,000.
A decline to the zone will also indirectly negate the previous excellent performance and will likely give an early indication for the price to form a downtrend pattern.
