It seems that the most invulnerable bulwark on the GBP/JPY chart is seen as still unbreakable after the 149,000 support zone continued to record a jump of over 200 pips in earlier trading this week.
At the same time the surge has already negated the fall made at the close of trading last week (Friday) and continues to give early indications for the price to make a bullish trend.
Early indications for the bullish trend can clearly be seen as the price movement has passed the resistance trendline as well as the Moving Average 50 (MA50) barrier level at the 1 -hour timeframe.
The Pound continues to take advantage of the opportunity to dominate price movements after being supported by good news from the UK that it has a desire to resolve the Brexit crisis.
Not only that, the Pound also gained support from expectations that the UK inflation rate is likely to soar which will totally influence the Bank of England (BOE) to raise interest rates.
While Covid-19 outbreak concerns over the new Omicron variant seem to be easing which has indirectly burdened safe-haven currencies including the Yen to weaken.
Of course, the past support zone which is now the SBR (support become resistance) zone of 151.000 will be concluded as a focus to be penetrated to see the price movement continue to increase.
Assuming the zone is successfully torn down, investors are expected to issue subsequent expectations that will likely be more focused on the latest target around the next SBR zone of 152,000.
However, on the other hand, the trendline resistance and also the 150,000 zone are likely to be taken into consideration to be achieved again whether it will make a rebounce or return with a downward trend.
Following that aspect, analysts are of the opinion that the lower decline is expected to once again hit the strongest support zone since March 2021 at 149,000 to be retraced.
