The price movement pattern on the GBP/JPY chart is seen to be similar to the one on the USD/JPY chart for the past few weeks triggered by the Yen controversy.
However, the pattern is expected to change after the central bank of England's monetary policy meeting today which will drive the Pound trade.
Until today, there is still no explanation given by the Japanese authorities regarding the expected measures of intervention in the market that took place to witness the drastic movement of the Yen currency.
Neither the government nor the central bank refused to comment on the matter despite various speculations.
Investors are watching the price action on the GBP/JPY chart once again showing a moderate increase this week that has eased off from last week's aggressive action.
If observed, the price initially reached a high of 200.00 before plunging and ending trading below 192.00 at the end of last week.
This week, the price moved back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart showing an early signal for a bullish move.
The price is slowly hovering around the 194.00 level in the Asian session today (Thursday) awaiting the BOE meeting.
If the price bounces after this, the 197.00 level is the initial focus to reach before a successful move higher will head back to the 200.00 resistance zone.
On the other hand, if the price plummets, passing the 193,500 level will see the 191,500 level that was reached last week also be overcome by the price.
Next, focus zones such as 190,500 to 188,500 are among the targets for an extended price drop.
See the GBP/JPY price chart image below for your technical analysis reference.
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