Asian investors saw a sharp drop in the value of the Yen, decelerating again from the strong performance it had displayed last week.
This is due to the effect of the market reaction to the meeting of the central bank of Japan in the Asian session just now.
As investors expected a change in monetary policy, the Bank of Japan (BOJ) decided to maintain their loose policy and saw interest rates unchanged at a low of -0.10%.
The missed expectations again plunged the value of the Yen a little while ago and there was a drastic movement on the main price charts.
Like the price chart of the GBP/JPY currency pair, the price has surged from below the 157,700 level until reaching the 161,500 level.
In yesterday's trading on Tuesday, the initial signal of a change in the price bullish trend was assessed as the price started to move above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/JPY chart.
In the European session yesterday as well, prices rose slightly as a relatively positive UK jobs data report supported prices moving higher, but was blocked at the resistance level of 157,700.
The focus on the European session this afternoon will be directed at the release of UK inflation data which is seen to also influence the direction of price movement to the next session.
Based on the surge displayed, the price increase is expected to continue higher to the next resistance level at 162.00.
A break above the following level will push the price up, targeting a high at 164,500.
However, if the situation changes and sees the price plunge again, the price is seen to drop below the 160,500 level to return to the previous concentration level of 157,700.
A lower drop will trigger a bearish signal for the price and is likely to reach the support zone at 155.700.
