Market sentiment is still assessed at risk with the continuation of the war between Russia and Ukraine which has yet to show signs of ending.
Still, the panic that has erupted since the war began is seen to be easing even as markets remain wary of the uncertainties that have engulfed them.
The safe-haven Yen, which had previously gained an advantage when concerns peaked at the beginning of the war, began to weaken again as the market began to absorb the panic situation before.
Furthermore, investors expect the Japanese central bank (BOJ) to remain dovish in delivering indicators on their monetary policy at a policy meeting this weekend.
Prior to the BOJ meeting on Friday, the market will first focus on the outcome of the meeting of the central bank of England (BOE) and the Federal Reserve (Fed) on Thursday.
The Bank of England (BOE) which is expected to raise interest rates is seen to provide support to the movement of the Pound.
Thus, the price movement on the chart of the GBP/JPY currency pair has displayed a bullish pattern since last week with expectations for the decline of the Yen and the strengthening of the Pound.
The price remains moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the GBP/JPY chart for a bullish signal.
The price which had moved above the 153.00 level at the market opening earlier in the week has risen to a high of around 154.700 until yesterday’s New York session before a slow flat below that level continued in today’s trading.
If the price increase is successful, the price resistance zone that will be tested next is seen to be around 155.200.
The high level up to 157.700 will be the next target of the price if the price increase on the bullish trend also passes the resistance at 156.200.
However, if the price plunges back down, the 153.00 zone is seen to be a support for the price like the trade that took place on Tuesday.
A lower decline beyond that zone will push the price back towards the 151.00 support zone that was hit last week.
