The GBP/JPY pair rallied on Friday as the Yen Futures dropped. The bias is bullish, so further growth is expected. As you already know, the BOJ left its monetary policy unchanged in the October meeting and announced that BOJ Policy Rate remains at -0.10% in the upcoming meetings.
Today, the Japanese data could have an impact. The Prelim Industrial Production is expected to register a 0.8% drop, Retail Sales may report a 4.0% growth, Consumer Confidence could be reported at 31.0 points, while Housing Starts may report a 2.6% growth. On the other hand, the UK is to release the M4 Money Supply, Mortgage Approvals, and Net Lending to Individuals.
GBP/JPY New Higher High!
As you can see on the h1 chart, the rate failed to retest the uptrend line which represents dynamic support signaling strong buyers and potential further growth. The 170.60 former high represented a static resistance, so more gains are possible as long as it stays above this level.
The 170.00 psychological level represented an upside obstacle as well. Stabilizing above it could attract more buyers.
GBP/JPY Prediction!
170.09 and 170.60 represented upside obstacles. Breaking above these levels signaled an upside continuation and was seen as a long opportunity. Coming back to test and retest the 170.60 could bring new long opportunities.
