The GBP/JPY currency pair showed a massive jump of more than 150 pips on weak yen. It recently peaked at 199.56 and is currently trading around 198.67, having gained over 800 pips last month. The Potential Reversal Zone (PRZ) is set at 200.20.
Markets eye BOE monetary policy meeting for further movement
The Bank of England (BoE) is expected to lower interest rates by 0.25% today, decreasing the rate from 5% to 4.75%. About 90% of market participants believe this will happen, making it the second rate cut this year after a reduction in July 2024. However, rising government debt and inflation could make it harder for the BoE to cut rates in the future.
Any aggressive rate cut would likely lead to a further decline in the British Pound.
Technical Overview: GBP/JPY is trading above both short-term and long-term moving averages, indicating a bullish trend. Immediate resistance is at 200.20, and if this level is breached, the price could rise toward 202/205. Support is located at 197, with potential drops to 196.50 and 195.40 if that level fails.
Indicator Analysis:
- CCI and ADX suggest a bullish trend.
Trading Recommendation: Consider buying above 200.20, with a stop-loss set around 199 and a target price of 202.
