The price chart of the GBP/JPY currency pair showed a decline to last week's recent lows, but did not extend the fall at the end of the week.
Why does that happen?
This was driven by the market's reaction to the results of policy meetings by both the central banks of Japan (BOJ) and England (BOE).
Last week, the BOE surprised the market by not raising interest rates which remained at 5.25%, ending 14 consecutive rate hikes.
The Pound weakened significantly after the meeting's decision on Thursday.
The next day on Friday, the BOJ came out with unchanged results with rates kept low at -0.10% and policy remaining loose.
Thus, the Yen which also weakened again offset the price drop on the GBP/JPY chart before that.
At the beginning of last week, the price hovered around the 183.300 level before plunging to 181.00 following the reaction to the BOE meeting.
However, the fall did not continue as the weakening Yen subsequently lifted the price slightly to around 182.00.
However, the price still shows a bearish movement when the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart fails to be overcome.
Continuing until the opening trade earlier this week, the price moved slowly below the 182.00 zone and was also hindered by the MA50.
Market analysts expect the price trend to be more bearish with the probability of new lows being recorded.
If the price drops past 181.00, a further drop in price can be targeted to reach around the 179.00 zone.
However, if the Yen weakens against the Pound, the price could rise again to trade above the 182.00 level.
If the resistance is broken, the price will go back to the 183,300 level that was the focus of last week before the price plunge.
