GBPJPY Chart Technical Outlook corrects higher, vulnerable to fresh fall to 183.74 on Yen strength
The Bank of Japan is hawkish while the rest of the world is dovish – that is why the Yen is on a roll, rallying across the board. I expect further falls, especially as the upside correction was triggered by US core CPI – a move that carried USD/JPY and other Yen crosses temporarily higher. That is set to fade.
What about the Pound? I expect a dovish message from the European Central Bank. While that mostly affects the Euro, Sterling could slightly suffer as well.
GBP/JPY has support at 183.74, and then at 182.77 and 180.08. Resistance is at 186.50, followed by 188.11. The trend is clearly down.
