The GBPJPY price has broken through a major level of resistance opening the door to higher prices. Will the price reach the next resistance level of 173.00?
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The price of GBPJPY has broken through the major highs of 167.50 opening the doors to buyers to the next level of resistance. Recently the UK has undergone a change with the replacement of the recent UK Chancellor Kwasi Kwarteng with Jeremy Hunt. The new UK Chancellor has then gone on to U-turn the recent budget. Not only this but the Bank of England has suggested that they are open to hiking interest rates. The BoJ on the other hand are not open to changing their stance on monetary policy which has seen the JPY weaken further.
Looking at the price from a technical point of view we can see that the price recently found support at the major level of 160.50. This was where the price consolidated and broke higher on the 4hr time frame. This breakout was met with resistance which saw a move below the consolidation zone. This would have put doubt in buyers minds and would have appealed to sellers. However, sellers would have been caught on the wrong side of the move here with the price trading back towards the highs of 165.50. Price has then gone on to trade above the 167.50 highs, this could offer long opportunities for buyers who are looking for the price to test 173.00.
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