It is interesting to talk about the price action on the chart of the GBP/JPY currency pair for this week.
Did you know that the price increase recorded has reached the highest level that has not been reached since 2016?
If observed, last Friday the price reached a height of 174.600, but it is seen to retreat again this week to the RBS (resistance become support) zone around 172.700.
Last Wednesday, the price managed to bounce back from the RBS zone and hovered at the high zone of last week throughout Thursday yesterday.
Although there are not many factors supporting the strengthening of the Pound at the moment, but the British currency is seen to remain in good shape against the more gloomy Yen.
Price movements above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/JPY chart expect the bullish trend to continue.
Expectations were right as investors saw another rise today (Friday) that surpassed last week's highs and recorded a new 8-year high.
As of the beginning of the European session, the price managed to climb to around 175.00, and if the momentum is successfully maintained, the price could continue to record new highs.
Analysts target a high level of up to 179.00 which the price can reach if the bullish trend is successfully maintained.
Meanwhile, for the expected price drop, last week's height zone around 174,600 will be targeted again and will likely function as a new support.
However, if the price falls lower and breaks through the MA50 support, this will be an early sign that the price is about to fall.
The RBS 172.700 zone will again be the focus of an extended decline.
