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The GBP/JPY pair is attempting to maintain an auction price above 167.50 during the early Asian session. Investors anticipate the continuance of interest rate increases from the Bank of England (BoE) in light of the United Kingdom's unwillingness to abandon double-digit inflation.

Labor scarcity and food inflation have remained significant contributors to persistent UK inflation, leaving BoE policymakers sleepless. Monthly Retail Sales in the United Kingdom decreased by 0.9% compared to the consensus estimate of a 0.5% decline, indicating that households are feeling the pinch of inflation-adjusted prices for goods and services.

Meanwhile, the new governor of the Bank of Japan (BoJ), Kazuo Ueda, favors maintaining a dovish posture in order to keep inflation above 2%.

GBP/JPY displayed a V-shaped recovery on a six-hour time frame after receiving support from the lower portion of the Rising Channel chart pattern. The market participants view every retracement in the aforementioned chart pattern as a purchasing opportunity. The Pound Sterling is propelling the cross towards the horizontal resistance drawn from the high of 169.28 on December 13, 2022.

The British Pound has sustainedably crossed above the 20-period Exponential Moving Average (EMA) at 166.94, indicating a bullish near-term trend.

In the meantime, the Relative Strength Index (RSI) (14) rebounded after perceiving support near 40.00, indicating that the downward momentum was resolutely protected.

In the future, a decisive move above the high of April 19 around 168.00 will propel the cross 13 December 2022 high to 169.28 followed by the high of November 02 at 170.33.

A breakdown below the April 21 low of 165.52 would strengthen the downside bias and expose the cross to the April 10 low of 164.00 and the April 5 low of 162.78.

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