GBP/JPY analysis: Two scenarios likely

Dukascopy Bank Team Dukascopy Bank SA

GBP/JPY

The GBP/JPY currency pair bounced off the support level formed by the 50– hour simple moving average at 157.00 on Tuesday. As a result, the British Pound rose by 109 pips or 0.70% against the Japanese Yen.

The exchange rate is currently trading near the upper line of an ascending channel pattern and could be set for a breakout.

If the breakout occurs, a surge towards the psychological resistance level at 160.00 could be expected within this session.

However, if the channel pattern holds, the currency exchange rate might make a brief retracement during Wednesday's trading session.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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