GBP/JPY Will Continue Last Week's Declining Pattern?

thecekodok

 The price chart of the GBP/JPY currency pair is scrutinized by investors as trading heads towards the end of the week when interesting patterns begin to form which will be evaluated as indicators of further movement.


Expectations last week were to push prices lower as the Pound weakened after the Bank of England's (BOE) meeting signaled an end to policy tightening.


However, investors are also cautiously examining the impact of the movement of the Yen currency following the news of the intervention of the central bank of Japan (BOJ) into the market.


If observed the price on the GBP/JPY chart has previously shown a decline to the 156,800 level at the close of trading last week.


Continuing the opening earlier this week saw the price manage to rise almost touching the 160.00 level before the decline was shown again to around 157.700 again.


On Wednesday yesterday, a slow price increase pattern was exhibited from the 157,700 level to around 158,800 and began to cross the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/JPY chart until trading continued today (Thursday).


With the pattern formed, analysts expect a further drop in price is likely to occur.



If the price falls below the level of 157.700, further decline will continue and may surpass the level reached last week at 156.800.


Next, the price will continue to decline towards the 155,400 zone which has become a support zone for the price in January trading.


However, if the surge is displayed, the price will test the level around 160,500 after showing a signal of bullish movement.


The continued rise will reach the resistance zone at 162.00 again which has been a barrier to price increases in the previous weeks.