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The GBJPY has continued to climb strongly to the upside, since the end of March 2023 and currently trades just below the 183.00 price level. This move higher is driven by a combination of the weakness of the Japanese Yen and renewed strength in the British Pound.
The Bank of Japan (BoJ) has begun to sound warning bells regarding potentially excessive moves in the Yen, and markets are speculating about the possibility of intervention from the BoJ. The previous intervention from the BoJ came when the USDJPY reached the 145 price level. The USDJPY currently trades along the 143.60 price level.
This could indicate that further upside could be anticipated on the GBPJPY before a strong correction to the downside. If the GBPJPY breaks above 183 the price could continue to climb towards the next key resistance level of 188.70, with the Ichimoku cloud providing strong support for the uptrend.
As the Relative Strength Index (RSI) is well into the overbought region, watch for a possible reversal if the BoJ intervenes, especially along the 188.70 resistance level or at the major swing high of 195.60 (last reached in June 2015)
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