GBP/JPY is waiting for catalysts at 172.30

FXStreet (Moscow) - GBP/JPY is still sleepy, though the bears managed to push it from the Asian high of 172.50 its current level of 172.30

Time for the Bank of England to make a show

GBP/JPY was lucky as it managed to gain more than 150 pips and close above and important level of 172.00 during previous week. Obviously, the cross was driven mostly by GBP positive dynamics, while JPY weakening in the beginning of the week also played its role. Technically, the weekly close above 172.00 is a good bullish sign and a reason to hope that the cross will continue to grow and reach at least 173.00 resistance that has coped the upside wince the beginning of April. Though, fundamentally, this week is full of GBP-related event and Bank of England minutes and Mark Carney speech re among the most important events that may influence the cross movements. If the central bankers convince the markets that there will be no rate hikes or any other tightening measures any time soon, the British currency may weaken across the board. On the intraday basis, watch for 172.00 on the downside and 172.45/50 on the upside.

What price levels and patterns have to be considered?

Spot is presently trading at 172.37, and next resistance can be seen at 172.54 (Yesterday's High), 172.55 (Daily Classic R1), 172.56 (Daily High), 172.92 (Daily Classic R2) and 172.99 (Weekly Classic R1).

Support below can be found at 172.30 (Daily Open), 172.27 (Monthly High), 172.26 (Weekly High), 172.24 (Hourly 20 EMA) and 172.17 (Daily Classic PP).