The Pound is seen to have managed to make a surge against the Yen in trade heading into the end of the week after ending a bearish pattern on the GBP/JPY currency pair chart in the previous week.
Investors' focus will now be on the results of the Bank of England (BOE) policy meeting in the European session with an expected interest rate increase of 50 basis points for the highest increase since 1995 and the increase will respond to the movement of the Pound.
Meanwhile, the Yen currency is seen moving gloomy with uncertain market sentiment.
Pay attention to the price movement on the GBP/JPY chart, the price in the Asian trading session yesterday (Wednesday) was seen moving horizontally above the 162,000 zone level before the price made a jump of around 100 pips to the 163.00 level.
The opening of early August trading saw the price initially showing a decline of around 200 pips to 159,500 marking a recent 5-week low.
But after a significant price decline, the price bounced back to the 162.00 zone and also managed to break through the 1-hour Moving Average 50 (MA50) barrier on the GBP/JPY chart last Tuesday to signal a bullish trend change.
With the MA50 level as support, prices continued to rise on Wednesday yesterday but at a slower pace compared to the surge displayed the previous day.
Continuing on today's trading session, prices moved flat for a while in the Asian session before resuming gains in the European session as investors became increasingly cautious awaiting the approaching BOE policy meeting.
If the price manages to continue the surge higher, the barrier level at 164.500 is seen as a focus to be tested to continue the movement in the current bullish pattern.
The next rise will test the resistance level at 166,200 to record the latest 1-week high.
On the other hand, if the price plunges again is likely to be influenced by the results of the BOE meeting, the price will cross the 162,000 level again and the bearish trend change signal will be re-evaluated for a drop below the MA50 support level.
The next decline will be towards the 160.500 level before the price tries to overcome the lowest level reached last Tuesday at 159.500.
