GBPJPY Chart Technical Outlook completed a corrective structure, 184.35 eyed, GBP/JPY broad bias is bearish on the monetary policy divergence between the BoE and the BoJ. The recent comments from both governors showed the opposite, as Ueda hinted about the possibility of hiking the interest rate if inflation persists, and Bailey hinted that rate hiking could be history.
The pair corrected lower since mid-August within an extended WXY structure that met the support of 61.8% Fibo retracement level, which overlaps a previously broken resistances-turned-support.
Today’s UK data showed soft Employment but strong Wages. A mixed output that left GBP flat.
The broad bias remains intact, and more upside price action could be expected. A break above 184.35 opens the door to 186.60.
Supports are located at 182.60 and 180.60.
