- GBP/JPY bounces to 170.65, buoyed by yen weakness and upcoming Bank of England decision.
- GBP/JPY targets 171.00, with sights set on a year-to-date high of 172.33 if momentum holds.
The GBP/JPY regained some ground after falling to weekly lows of 169.85, rising strongly above 170.00 as overall weakness in the Japanese Yen (JPY) as the main reason, along with the Bank of England (BoE) monetary policy decision lurking GBP/JPY is trading at 170.65, 0.14% above its opening price.
GBP/JPY Price Analysis
GBP/JPY seems to have rebounded from its weekly lows below the 170.00 figure, but remains far from testing the weekly high of 171.07. Since a golden cross occurred in early April, the GBP/JPY trend is bullish. Oscillators like the Relative Strength Index (RSI) show that buyers are gathering momentum. The 3-Day Exchange rate (RoC) shows its biggest jump to the upside, suggesting that GBP/JPY could retest the year-to-date high at 172.33.
But first, GBP/JPY must recover the 171.00 signal. A break of the latter would expose the 172.00 figure, followed by the year high.
However, if the GBP/JPY pair falls below 170.00, the downtrend would be guaranteed. GBP/JPY’s first support would be the December 13 swing high turned support at 169.27. Once broken, the next demand area would be the 170.00 level. Once broken, the next demand zone would be the confluence of the 20-day EMA and the April 19 high, around 168.20/167.97, respectively, followed immediately by the December 20 daily high at 167.01.
GBP/JPY Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
