After the FOMC meeting passed, price movements on the main charts were seen to display interesting patterns and steal the spotlight, one of which was the chart of the favorite pair, GBP/JPY.
An interesting combination market between the Pound and the Yen, the two currencies are expected to move in opposite directions based on the different steps taken by their respective central banks in setting their monetary policy.
Policy tightening by the Bank of England (BOE) is expected to strengthen the Pound, while policy easing by the Bank of Japan (BOJ) will push the Yen down.
However, in the current movement towards the end of this week's trading, the Pound and the Yen each moved against the expectations of investors.
It is likely that risky market sentiment supports an increase in value for the Yen as a safe-haven currency, while market players are seen to be more alert for the movement of the Pound to await the outcome of the BOE meeting next week.
Thus, the price on the GBP/JPY chart towards the end of the week has displayed a bearish movement pattern again after the previous price surge during the FOMC meeting.
At the last FOMC meeting, prices were seen to have risen to test the resistance level around 166,200 before the plunge in prices was seen starting at the beginning of the Asian session on Thursday yesterday until continuing into the European session this Friday afternoon.
A bearish price signal is assessed after the continued decline has crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame of movement on the GBP/JPY chart.
From the height of 166.200, the price has plunged past 164.00 and retested the price support zone at 162.00.
If the decline continues in the last trading session of the week, the price is seen to reach the concentration level again at 160.500 to record the latest 3-week low.
That level remains an important price support zone for the trading period throughout June and July.
As for the expectation for price movement again, the rebound from the 162.00 level will first test the concentration level at 164.500 before once again reaching the resistance level of 166.200.
And a rise above that level would set a new 7-week high with a target of reaching 168.00.
