In GBP/JPY quotes there is a high probability of a trend reversal. From the chart we can see that, in fact, the upward momentum has been lost since August, and the pound has no incentive to grow because the interest rate is growing slowly, the economy is not impressive with its performance, and the global economy as a whole is not conducive to growing demand for risky assets.
The Bank of Japan has disappointed with its commitment to ultra-loose rates, allowing the pound to strengthen this week. However, the horrific fall in China's trade surplus signals serious problems in the global economy, which is supporting the JPY at its current level.
This week it was reported that UK GDP grew by 0.6% in the third quarter, but industrial production growth in September was zero, and business activity in the construction sector was only 45.6 pips. Bank of England officials denied rumors of a rate cut, which supported the pound near its highs.
Volatility will rise next week with Japan's Q3 GDP, UK employment and inflation reports expected, as well as China's industrial production. We believe that the pound will not have enough incentive to continue growing and overcome the maximum. In general, we see all the signs of the emergence of a downward trend, which will be fully reflected in 2024, and now, while the price is still near the highs, Sales can be maximally profitable, while Buys have extremely limited potential. GBP/JPY with zero spread? It's real with out Zero spread account where you can make unlimited number of deals without any spread. Register now and we will add +50% Welcome bonus, tradable in full https://superforex.com/no-spread-account.
