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The GBP/JPY Pair Struggles At 183.00 Before Plummeting To The Summit Of The Ichimoku Cloud
As a result of its inability to extend its advantage, the GBP/JPY formed a bearish harami candlestick pattern. Even though the Kumo is neutral, a decline within it could cause the pair to resume its downtrend. Regaining a three-month-old resistance trendline could allow buyers to reassess the year-to-date high.
The GBP/JPY remains underpinned by limited price movement in anticipation of the monetary policy decision of the Bank of England (BoE) on Thursday. Despite the pair surpassing the Ichimoku Cloud (Kumo), there are still downside hazards to consider. As of this writing, the cross-pair is trading at 182.94, representing a decrease of 0.28%.
Neutral in bias, the daily chart depicts the cross pair notwithstanding its breech of the Kumo. In order for buying to resume, the exchange rate must rise above 185.00, thereby surpassing a resistance trendline that has been in place for three months and passes near that level. That, once resolved, would create an opportunity to approach the year-to-date (YTD) peak at 188.80.
If sellers intervened and dragged prices within the Kumo, however, the pair might recommence its downtrend. The bottom of the Kumo, at 181.99, is a critical support level, followed by the low of 181.60 set on December 11. Upon a decline below that threshold, the 180.00 mark becomes potentially accessible.
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