The British Pound has been depreciating against the Japanese Yen within an ascending channel pattern since September 20. The GBP/JPY exchange rate tested the lower boundary of the channel pattern at 131.72 during the morning hours of Thursday’s trading session.
From a theoretical perspective, the currency pair will most likely break the descending channel pattern in the nearest future, and the rate might target the monthly S3 at the 129.49 regions.
However, the currency exchange rate has to pass the 200– hour simple moving average at 131.72 before such movement could occur.
