The price chart of the GBP/JPY currency pair today is observed by traders when the price has reached the critical zone.
Both the Pound and the Yen have been trading volatile these past few weeks, particularly the Yen with the risk of Japanese intervention in the market.
The pound remains at risk throughout the week as markets await next week's UK inflation data which will provide an update on central bank policy.
On the GBP/JPY chart yesterday, the price has made an increase above the 182.00 level which is also supported by the Moving Average 50 (MA50) line on the 1-hour time frame on the chart.
The rising pattern continued today (Wednesday) reaching the important zone at 183.00.
If noticed, the zone has been tested several times in recent weeks, but is still thick to break through.
Today, once again the price reached that zone to test it and the price reaction is being watched for the next indication.
If the price finally succeeds in breaking through that important resistance, the rally will continue for the price to record the level of the latest 4-week high.
The target can reach up to 184.00 to 185.00 if the price remains on a bullish trend.
If the wall of 183.00 fails to be breached, the price is at risk of falling back down with the nearest support level that will be the focus being at 182.00.
A drop that crosses the MA50 support line will signal the beginning of a bearish trend move for the price.
The price will target a decline towards the concentration zone at 180.80 which also showed a reaction last week.
