GBP/JPY 'Bearish' This Week, Will Continue After BOE Meeting?


The policy meeting has not yet taken place, the Pound has clearly jumped on the chart movement of the GBP/JPY currency pair if observed.

In the New York session tonight at 8pm local time, the central bank of England (BOE) meeting will take place after the market shifted its focus from the FOMC meeting early this morning.

The majority forecast is that interest rates will be maintained at 5.25% and the follow-up statement by the governor will be a key indicator of the direction of the next monetary policy and will also drive the direction of the Pound at the end of the week.

For the previous few weeks, it can be seen that the price on the GBP/JPY chart tested the resistance zone at 188.500 and failed to continue the rise higher.

A bearish pattern began to be exhibited this week with a significant decline in yesterday's New York session reaching around 186.00.

A bearish signal is observed when the price moves below the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.

The price is moving flat in the 186.00 zone until the opening of the European session this evening.

Lower declines are expected to continue towards the focus zone at 185.00 if the Pound continues to experience declines.

Next, the 184.00 zone will be the next target if the bearish movement continues.

However, it is possible that the situation could change due to the results of the BOE meeting which shocked the market.

If the price rises again, the SBR (support become resistance) zone at 187,500 is seen to be tested and give an interesting reaction.

A successful continuation higher will lead back to the previous resistance zone at 188.500.