For the second day in a row, GBP/JPY is up, hitting a new intraday high around 184.70 on Monday morning in Europe. As a result, the cross-currency pair continues its recovery from horizontal support, which includes several levels noted since early August amid conflicting worries about the Bank of England (BoE) and the Bank of Japan (BoJ).

Although BoE Deputy Governor Ben Broadbent stated at the Jackson Hole Symposium that higher rates were necessary owing to wage pressure, his economic outlook seemed to contradict both the hawks and the British Pound (GBP) optimists.

Also read: :BoE’s Broadbent suggests higher rates may persist due to price increases, while BoJ Governor Kazuo Ueda cites below-goal inflation in Japan as justification for ultra-accommodative monetary policy.

Also read:Ueda emphasizes “a bit below” inflation to support the current monetary easing regime. The upside bias towards the GBP/JPY pair is supported by bullish MACD signals and an upward-sloping RSI. The 50-SMA barrier of about 185.00 is likely to be broken by the cross-currency pair, but the 185.00 round number limits the immediate gain. If firmer, attention will turn to the August 186.80 annual high. The previous resistance line at 184.00 might be broken to the downside, which would push GBP/JPY prices towards 183.00, which serves as horizontal support. The last line of defense for pair buyers is the 200-SMA level at 182.90.

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