Will GBP/JPY Keep Rising After BoE “Super Thursday”?

Despite the huge political uncertainty in the U.K. that had a bad effect on the British pound, the GBP/JPY has been in an uptrend since mid-April and continues intact. The pair bottomed near 136.00 and is now ahead of a significant resistance at 148.50 and another one Super Thursday. Tomorrow, the Bank of England monetary policy committee (MPC) is expected to vote to keep the bank rate unchanged at 0.25% but not unanimously. One of the committee members is forecasted to continue supporting a rate hike despite the political instability after U.K. Prime Minister Theresa May called for U.K. general election on June 8. The minutes of the meeting will be released immediately, so traders will have a general picture of policymakers’ view for the economy. The quarterly outlook with forecasts will be published as well, shedding more light to the future of the economy and the direction of the GBP forex cross pairs.


GBP/JPY is Moving Sharply Higher Since Mid-April
Sterling is having an aggressive run to the upside against the Japanese yen since April while is now printing the fourth positive week in a row. The GBP/JPY pair added more than 5% at its value following the rebound on the 135.60 support barrier. In addition, the pair is ready to approach the 148.50 resistance barrier before going up to 151.70, if there is a break above 148.50.

Going to the daily chart, the price is moving far away from the three simple moving averages (50, 100 and 200) whilst the 50-SMA is ready to create a bullish crossover with the 100-SMA. The RSI indicator is still moving within the overbought area with strong momentum. The MACD oscillator is moving above both the trigger and zero lines indicating further bullish movement on price.