- The British Pound is under a bearish pressure versus the Japanese yen and may continue to decline.
- There is a major bearish trend line formed on the hourly chart of the GBPJPY pair, which is stopping the upside move in the pair.
- Recently, there were a few economic releases in the UK, which failed to help the British Pound.
- The BoE Interest Rate Decision was announced by the Bank of England in which the central bank kept the rates at 0.25%.
GBPJPY Technical Analysis
The British Pound after trading as high as 136.71 versus the Japanese yen found resistance and traded lower. The GBPJPY declined and followed a bearish trend line formed on the hourly chart, which is acting as a resistance for the pair.
The pair may continue to decline and might even break the last swing low of 134.50. If there is a correction, then the highlighted bearish trend line might stop the upside.
In short, one may consider selling rallies in the GBPJPY pair as long as the pair is below 135.40.
BoE Interest Rate Decision
Recently in the UK, the BoE Interest Rate Decision was announced by the Bank of England. The market was not expecting any change in rates from 0.25% in September. The result was as forecasted, as the central bank kept the rates unchanged.
The opening statement of the release pointed out that the “Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on 14 September 2016, the MPC voted unanimously to maintain Bank Rate at 0.25%. The Committee voted unanimously to continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves“.
Overall, there was nothing in the report, which might have helped the British Pound. As a result, the GBPJPY pair may continue its decline.