The British pound started off lower on Monday but quickly turned around, showing strength to rise above the ¥202 level by the time New York trading began. This market is experiencing upward momentum, as the Bank of Japan is unlikely to raise interest rates soon, making the interest rate differential beneficial at the end of each session.
Technical analysis shows that the GBP/JPY pair is bullish, with any pullback seen as a potential buying opportunity. The ¥200 level is a strong support level, having previously been a major resistance point. The 50-Day EMA is rising, indicating further upward movement in the long term.
Moving forward, any 100-pip drop in this pair presents a buying opportunity. Trading this pair may not be exciting, but it can be a profitable investment. Keeping an eye on the Bank of England’s rate decisions is important, but currently, aggressive rate cuts do not seem likely. The strategy is to add to the position whenever possible and ride the trend for maximum profit.