GBPJPY - TRADING WITHIN TRAINGLE PATTERN FORMATIONSymbol - GBPJPY
The GBPJPY is currently trading within a symmetrical triangle pattern and recently experienced an attempt to breach resistance levels and rise. However, the momentum has proven insufficient, as market participants remain skeptical of any bullish movement, primarily due to the actions of the Bank of Japan. The Bank of Japan recently increased its interest rate by 0.25%, marking the highest level since 2008, in response to accelerating inflation and a slowing economy. The central bank has signaled that further rate hikes are possible if inflation continues to rise.
From a fundamental perspective, this could lead to a potential decline in the GBPJPY currency pair, although the strength of the British Pound against the US Dollar may mitigate this effect. Technically, the recent attempt to break resistance appears to be a false breakout, with the medium-term outlook influenced by both the technical structure and the Bank of Japan's actions.
Key resistance level: 195.00
Key support levels: 192.00, 190.50
It is possible that another attempt to test resistance will occur before a subsequent decline. Traders are increasingly building long positions on the Japanese Yen, which could result in a bearish correction for the currency pair.
