The GBPJPY has increased for four days in a row, reaching a multi-month high after BoJ Governor Ueda gave a speech. However, a pullback is anticipated according to the opinion of @nehcap.

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• GBP/JPY rises for the fourth consecutive day to refresh multi-month high after BoJ Governor Ueda’s speech.

The pair currently trades last at 180.598.

The previous day high was 179.4 while the previous day low was 177.26. The daily 38.2% Fib levels comes at 178.59, expected to provide support. Similarly, the daily 61.8% fib level is at 178.08, expected to provide support.

GBP/JPY bulls cheer dovish comments from Bank of Japan (BoJ) Governor Kazuo Ueda by leaping to a fresh high since December 2015, up 0.55% intraday around 180.40 during early Friday morning in London.

That said, the BoJ kept the short-term interest rate target at -0.1% while directing 10-year Japanese Government Bond (JGB) yields with the band of +/-0.50% earlier in the day by expecting softer inflation pressure to arrive. To defend the view, BoJ’s Ueda recently said, “More time will be needed to meet the central bank’s 2% inflation target.”

Also read: BoJ’s Ueda: More time needed to meet BoJ’s 2% inflation target

Although the BoJ-inspired rally has fewer fundamental hurdles, the technical details suggest a pullback in the GBP/JPY price amid the overbought RSI (14) line, as well as the quote’s battle with the horizontal area comprising levels marked in September-October 2015, near 180.40-80.

Even if the quote rises past 180.80, the 181.00 round figure and 78.6% Fibonacci Expansion (FE) of its moves from September 2020 to December 2022, near 186.30 and the 190.00 round figure will challenge the GBP/JPY bulls.

Meanwhile, the GBP/JPY pair’s failure to provide a weekly closing beyond 180.80 can trigger a pullback toward the 180.00 round figure and then to the 61.8% Fibonacci retracement level of around 179.50.

Above all, the GBP/JPY buyers remain hopeful unless witnessing the weekly close below the previous resistance line from April 2022, near 176.20 by the press time.

Trend: Pullback expected

Technical Levels: Supports and Resistances

GBPJPY currently trading at 180.38 at the time of writing. Pair opened at 179.39 and is trading with a change of 0.55% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 174.13, 50 SMA 170.67, 100 SMA @ 166.2 and 200 SMA @ 165.04.

The previous day high was 179.4 while the previous day low was 177.26. The daily 38.2% Fib levels comes at 178.59, expected to provide support. Similarly, the daily 61.8% fib level is at 178.08, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 177.97, 176.55, 175.83
• Pivot resistance is noted at 180.11, 180.82, 182.24

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