GBP/JPY Price Forecast: Up move takes root after BoE decision

GBP/JPY pivoted on September 11 and started moving higher.
This new up move has extended following the BoE decision to leave interest rates unchanged.

Joaquin Monfort FXStreet

GBP/JPY formed a Hammer candlestick reversal pattern at the September 11 lows and has been pushing higher ever since. It has had an extra left on Thursday following the Bank of England (BoE) interest rate decision.

GBP/JPY Daily Chart

A new short-term uptrend appears to have formed and is carrying GBP/JPY higher. It is currently hitting support-turned-resistance at 190.34 and could stall. If it decisively breaks higher it will probably target the 50 and 200-day Simple Moving Averages at 192.08 and 190.34 respectively. These are likely to produce even more resistance and may be difficult to break above.

The medium-term trend is sideways and chaotic providing no hints as to where the underlying current is flowing.

This suggests caution should be exercised by traders as price could flip at any moment and start moving in the opposite direction.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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