Chapter 12 Is GBPJPY on the way to 147.000 !!!
GBPJPY
Fundamental analysis
Sterling's wild volatility halted as the British government abandoned the tax package and the central bank moved on the bond side. But that does not mean that the pound's decline has stopped. Continued high inflation and a slowing economy in the last quarter of the year may lead to continued weakness in the Pound Sterling. Today's reported inflation remains at 10.1%, the highest in 40 years, and food and other costs such as fuel costs appear to be driving inflation in the UK.
Markets panicked over the sterling and are trying to be optimistic this week as the impact of balance sheets fades. But in the foreign exchange market, the focus is on Japan.
The Japanese Yen is rapidly declining in value. While USD/JPY was at 149.50, a 32-year high, the 10-Year Bond Index rose above the critical 0.25 level. what does that mean? This means that the central bank may intervene by implementing a new sale of foreign currency at any time
technical analysis
The price is showing strength and is about to break out on 4-hour charts With the 20 moving average pointing up the expectation of this kind of situation and technical moves going to the price at 147.000
