- GBP / JPY bounces and recovers relevant technical levels
- Market participants await the FOMC’s decision; Thursday, it will be the BoE.
The GBP/JPY extended the rebound on Wednesday from 150.80 to the 152.00 area. Then he backed away, losing momentum. On the bullish move, it rose again above the 21-day moving average on the four-hour chart.
Now the 151.60 area is immediate support, and a drop below would add negative pressure on the pound, exposing 151.25. A consolidation below could open the doors for a test of 150.80.
The signs on the graph are unclear. GBP / JPY rose above key flat moving averages and rather than strengthening a possible bullish move, it reduced the odds of a deeper correction.
The price seems to move again in a consolidation range between 151.20 and 152.00 before relevant events. In a few hours, the Federal Reserve will announce its decision on monetary policy. Thursday will be the Bank of England. No changes are expected in the rates of both central banks. Market participants will be on the lookout for a possible increase in bond yields.
On the upside, the key level remains the 152.00 area. A daily close above would open the doors for further gains towards 153.00 with intermediate resistance at 152.25 (March 12 high).
4 hour chart
Technical Levels
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