The GBP/JPY currency pair bounced off the support level formed by the 50– hour simple moving average at 157.00 on Tuesday. As a result, the British Pound rose by 109 pips or 0.70% against the Japanese Yen.
The exchange rate is currently trading near the upper line of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the psychological resistance level at 160.00 could be expected within this session.
However, if the channel pattern holds, the currency exchange rate might make a brief retracement during Wednesday’s trading session.
