The upward movement takes root after the BoE decision

• GBP/JPY pivoted on September 11th and started to move higher.
• This new upward move has been extended following the BoE’s decision to leave interest rates unchanged.

GBP/JPY formed a Hammer candle reversal pattern at the 9/11 lows and has since risen. It has a plus left on Thursday, after the Bank of England (BoE) interest rate decision.

GBP/JPY Daily Chart

A new short-term uptrend appears to have formed and is taking GBP/JPY higher. It is currently touching support turned resistance at 190.34 and could stall. If it declines decisively, it will likely target the 50- and 200-day SMAs at 192.08 and 190.34, respectively. These are likely to produce even more resistance and can be difficult to break above.

The medium-term trend is sideways and chaotic, giving no indication of where the underlying current is flowing.

This suggests that traders should be cautious as the price could reverse at any moment and start moving in the opposite direction.