Vladimir Ribakov analyzes GBP/JPY after a sharp decline, noting a broken resistance now acting as support, oversold daily conditions, and a bullish divergence suggesting a reversal. A busy week of central bank decisions, including a rumored Bank of Japan rate hike to 125%, could either confirm or overturn the technical setup.
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Hello traders, Vladimir here from Home Trader Club. In this video, I want to make a follow-up on the pound yen, a pair that we follow for a while. So let's begin. Before we start, big thanks to Eightka Broker for supporting our community. To keep and enjoying all our amazing offers we have with Eightka Broker, please Please refer to the link below this video in the description. So following up the analysis we've had on our last weekly forecast, one of the scenarios we were talking about is that the pound yen is going to make its final drop down, complete the lower lows, be starts to build a bullish divergence, and from there build up a beautiful. Corrective momentum or movement, whatever we, we say that we name it. So here is a very important thing. As I started to follow in the weekly forecast, we have a very, very, very busy week full of fundamental news. Federal Reserve rates, the Japanese bank rate decision, British rate decision, and so on and so on. Non-farm payroll coming. Lots of things. With all that being said, and with all the, of course, respect technical analysis has, the fundamental ones could be the one that boost the analysis or force a change, and we have to reanalyze. Very important to remember that. So I come from the perspective of the technical here only. And that's what I will be showing. But today we also had some leaked rumors that the Bank of Japan would be considering to hike up to 125%. So that's that gave another boost to the pound yen. But with all that, the market is anticipating that. Okay, what we see right now, that's what that's the way the market represents its expectation. So the way I see that, the market expects the Bank of Japan to make a move. And the biggest question would be if the move the Bank of Japan will make would be very hawkish. Will they hike and say, you know what, maybe that's not even the last one? Or would it be the one of this moment that they will hike and then say, that's it for now? And then of course it could be anti- yen movements. So from technical perspective, the pound yen is right now in a very interesting level. We had, well, first of all, the daily supportive area, but we are very close here, as you can see, to broken resistance that now will act as support demand level. We are very close to the dynamic 200 moving average, which was respected In this rally already before in end of December previous year, and we have huge, huge, huge, huge volume profile based balance zone here. Also very important to show that on a daily chart we are very close to oversold conditions. So from my point of view, the pound yen, the way I see that, should start and finalize its movement. And yeah, it could still make some, you know, final drops with the momentum, reach the levels we just saw on a daily chart, complete the bullish divergence, and from the daily broken resistance that now acts support up to the demand level, I believe a correction should start and build up on the pound yen. Very interesting thing to pay attention to also Is the this is the market trend snapshot we have in Home Trader Club. Take a look here on the numbers. Monthly is very negative, very negative, more than 3.5%. Pound yen on the seven days also is more than 3%, close to 3.5%. And even today, the last 24-hour chart very negative. Usually. The more negative it gets, the bigger the deviation it gets from the normal percentages in terms of changes, and that's what could also feed numbers into the technical analysis expecting to see a corrective movement. What do you think about the pound yen? Let me know in the comment section. Thanks for watching. Best to you and yours. I'll see you soon with more. Good trading. Bye for now.
