GBP/JPY Gradually Shows Off Higher Price Increases


The bullish price pattern continued to be maintained on the chart of the GBP/JPY currency pair for the seventh day in a row with the Yen losing its momentum.

At the end of April until the beginning of May, the Yen was significantly stronger when the market saw drastic movements in the market believed to be an intervention by Japan.

However, the Japanese authorities remained silent to comment on the matter.

The pound edged up against the yen amid concerns over the dovish tone delivered by Bank of England (BOE) governor Andrew Bailey on monetary policy at last week's meeting.

For now, the Pound is still showing positive movement and is now supported by the UK employment data report for April which was published with good readings for job growth and average earnings.

If observed on the GBP/JPY chart, last week started a pattern of price increase from the lowest level of 191.350 and passed the concentration level at 194.00.

At the end of the week, the price managed to reach a high of around 195,300.

The positive bullish pattern continued in the early opening of yesterday's week which remained climbing above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart as a bullish signal.

The rise continued today (Tuesday) with the latest high reached so far early in the European session at around 196,600.

If the pattern is successfully maintained, the price potential is to reach the expected high level of 2000.00.

That level was reached at the end of April before there was 'intervention' until the price plummeted.

While for the expectation of a price drop, the zone around 194.00-193.500 will be the focus with interesting price reactions will be observed.

If it breaks lower to the bottom, the price will reach the previous level around 191.350 and then to the next concentration zone at 190.00.