Our technical studies suggest GBP/JPY is rising in bull flag pattern which is likely to break considerably higher; the steep climb through January from the 130.69 lows constitutes the ‘pole’ part of the flag whilst the consolidation during February is the ‘flag square’.
Read more: Pound-Yen Outlook: Potent Bullish Pattern Forming
The Pound-to-Yen rate remains biased toward the upside, Pound Sterling Live technical studies suggest, even in the face of an ongoing rally from undervalued lows by the Japanese currency.
Read more: GBP/JPY Rate to Rise Despite Yen Strength, Charts Suggest
Amidst a global economic backdrop of elevated uncertainty the Japanese Yen emerges as one of the few currencies strongly tipped to rise, say strategists at Société Générale.
Read more: Japanese Yen to Benefit from Looming Synchronised Global Downturn
The technical outlook favours more upside on the condition the GBP/JPY exchange rate can break clearly above immediate resistance from moving average and trendline.
Read more: Pound-Japanese Yen Near-Term Forecast: More Upside Conditional Upon Breakout
The Yen fell Wednesday after the Bank of Japan (BoJ) slashed its inflation forecasts for a fourth consecutive time, undermining the case for a withdrawal of monetary stimulus over the coming quarters and prompting traders to dump the currency by the bucket load.
Read more: The Japanese Yen: USD/JPY and GBP/JPY Rise after BoJ Sees Inflation Target Moving Further Away