The GBP/JPY pair executed a sudden ascent to approximately 182.00 during the London trading session. The asset experiences an increase in value as market sentiment improves. Since the 'flash collapse' on Tuesday, which prompted a massive buying spree for the Japanese Yen, the cross has extended its upside substantially.

Previously, investors erroneously interpreted the split in the GBP/JPY pair as evidence of covert Bank of Japan (BoJ) intervention. However, the BoJ's money market data disproved this notion. As a result, the Japanese Yen once more lost its appeal, as the Bank of Japan is anticipated to maintain its expansionary policy stance for an extended period.

Conversely, the allure of the British Pound increases as Bank of England (BoE) Governor Andrew Bailey anticipates a reduction in inflation to 5% or less by the conclusion of the year. If the BoE is successful, the UK prime minister's pledge to reduce inflation by half to 5.2% by the conclusion of 2023 will be realised.

GBP/JPY exhibits a breach of the hourly Symmetrical Triangle chart pattern, characterised by substantial volume and wider ticks. Around 181.40, the 20-period Exponential Moving Average (EMA) will maintain to offer assistance to the bulls of the pound sterling.

A shift of the Relative Strength Index (RSI) (14) into the bullish range of 60.00-80.00 signifies the initiation of the bullish impulse.

A move towards the high point near October 3, 181.38, via mean reversion, would present market participants with a purchasing opportunity. This would cause the asset to reach its highest point on September 28 at 182.43, and then again on September 29 around 183.00.

A breakdown below the low of 179.47 on October 4 would, in an alternative scenario, expose the asset to the low of 178.00 on October 3.

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