Given that the Bank of England unrolled last week authentic
set of stimulus, which exceeded even the most courageous expectations, it was
not a surprise that this fact brought the GBP/JPY pair down and even below the
Brexit low. The sterling weakened considerably and reached daily low at 132.20,
but later on spilled slowly back to 133.17.
This week started with a gap above this point and the pair has found a new near term support which turned to be the old resistance.
While considering the sterling as quite bearish at present, we also must keep an eye on Bank of Japan as the expectations for stimulating monetary policy is still on the agenda.
Main resistance now is seen at 134.15 , which is another shift but from prior support to resistance.
This week started with a gap above this point and the pair has found a new near term support which turned to be the old resistance.
While considering the sterling as quite bearish at present, we also must keep an eye on Bank of Japan as the expectations for stimulating monetary policy is still on the agenda.
Main resistance now is seen at 134.15 , which is another shift but from prior support to resistance.
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