GBP/JPY - GBPJPY might pivot lower - 10/16/2024 (GMT)

GBPJPY displays technical weakness, consolidating in the coil (a low-volatile trading range) above the dynamic support area. The recent strength of the British pound might be temporary. At the same time, the Japanese yen is strategically supported by the BOJ's hawkish monetary policy and ongoing inflation in Japan (which reached 3% in August).

From the technical side, GBPJPY is locked in a triangular formation (chart pattern), and the new wave selling might be triggered from the possible retest of the higher boundary of this formation. Of course, the sell-off can start without a trigger, but the retest is usually a common trigger event.

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