Traders' expectations to see prices resume the bullish pattern on the chart of the GBP/JPY currency pair were misplaced when the bearishness returned yesterday.
Last Monday, a vigorous increase was shown in the price until it reached a high level of 161.200 before slightly declining to around 160.500.
The increase continued on Tuesday until reaching a height of 162.00. The price that tested the resistance zone was seen to fail to break through it.
On yesterday's Wednesday trading, a downward pattern began to be exhibited until the price reached around 160,700.
Despite a slight uptick in trade continuing into the Asian session today (Thursday), prices are seen struggling to stay above the Moving Average 50 (MA50) level on the 1-hour time frame on the GBP/JPY chart, hinting that the decline is likely to continue.
Investors are still monitoring the impact of published UK economic data for central bank monetary policy indicators to gauge the strength of the Pound.
While investors are also wary of Japanese Yen trading after the intervention of the central bank in the market.
If the price decline occurs again today, the support level around 160,500 will be tested and likely to be broken for the price to lower levels.
A further drop in price is seen to go towards the target of up to 157,700 which is a support for the price in last week's trading.
However, if the price manages to bounce back, the 162.00 resistance level has the potential to be broken by the price.
Next, the price increase will continue to record the latest 8-week high level to the 164.500 zone.
