Investors are waiting for further information regarding the interest rate peak in the UK, causing the GBPJPY pair to consolidate near the 181.00 level.

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• GBP/JPY consolidates around 181.00 as investors await more cues about the interest rate peak in the UK.

The pair currently trades last at 181.179.

The previous day high was 182.77 while the previous day low was 180.46. The daily 38.2% Fib levels comes at 181.34, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.89, expected to provide resistance.

The GBP/JPY pair remains back and forth around 181.00 after a recovery move from 180.50 in the London session. The asset recovered confidently as the Bank of England (BoE) raises interest rates by 25 basis points (bps) to 5.25% on Thursday.

This was the 14th consecutive interest rate hike by the BoE and interest rates at 5.25% are highest in the past 15 years. BoE Governor Andrew Bailey kept the door open for further policy tightening as the victory against stubborn inflation cannot be announced now. Out of the nine-member Monetary Policy Committee (MPC), BoE policymaker Swati Dhingra favored an unchanged interest rate decision. BoE Haskel and Mann supported for 50 bps interest-rate hike.

Andrew Bailey assured that inflation will come down to 5% in October as the labor market has started releasing heat and food inflation has peaked now. He further added that the option of a 50 bps interest-rate hike was not in the picture and the central bank will keep interest rates “sufficiently restrictive for a sufficient period” so that inflation returns swiftly to 2%.

This week, a survey from Citi/YouGov showed that 12-month forward consumer inflation expectations dropped sharply to 4.3% vs. former expectations of 5.0%.

Meanwhile, discussions over an exit from the decade-long ultra-dovish monetary policy by the Bank of Japan (BoJ) kept the Japanese Yen solid. In the monetary policy meeting announced last week, the BoJ provided more flexibility to the Yield Curve Control (YCC).

Technical Levels: Supports and Resistances

GBPJPY currently trading at 181.14 at the time of writing. Pair opened at 181.2 and is trading with a change of -0.03 % .

The pair is trading below its 20 Daily moving average @ 181.4, above its 50 Daily moving average @ 179.78 , above its 100 Daily moving average @ 173.38 and above its 200 Daily moving average @ 168.19

The previous day high was 182.77 while the previous day low was 180.46. The daily 38.2% Fib levels comes at 181.34, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.89, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 180.18, 179.16, 177.87
• Pivot resistance is noted at 182.49, 183.78, 184.8

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