InstaForex

November 5, 2021

Seriously! GBP/JPY Plunges Hard by BOE Decision

 It seems that the Yen continues to outperform the price movement on the GBP/JPY chart to push the price further down and erode the excellent performance displayed previously.


That is where the Yen benefits from strengthening at a time when the Pound is currently being dragged to weaken following unexpected measures taken by the central bank of England.


As is well known, the decision of the Bank of England (BOE) meeting on Thursday was to keep interest rates unchanged and completely far from the expectations discussed earlier.


The Yen index is also seen as poised to show a follow -up rebound supported by improving economic sentiment after a long slump at its April 2017 lows.


The price movement on the GBP/JPY chart saw a more vigorous plunge with a daily fall of over 300 pips to record the latest low in 2 weeks.


The fall also re -tested the 153.000 support zone and has moved below the Moving Average 50 (MA50) barrier level for early indications to form a downtrend pattern.



While the next support zone at 152.000 will be seen as the main zone that will be the focus of investors if the price movement continues to make a plunge.


However, if the price returns to signal to record a spike, the initial zone that may be tested is at the SBR (support become resistance) zone of 155,000 before the price continues to climb.


The higher increase is likely to lead to the next SBR zone at 156,000 which is also the zone of the beginning of the price plunge in yesterday's trading session (Thursday).