BoJ Decided Not to Expand Its Monetary Policy and GBP/JPY Fell with 550 Pips

The same thing happened with the other major JPY pairs – USD/JPY and EUR/JPY.

This announcement had a very impressive effect on the market.

However, since I am always very interested in interpreting the signals I see on the charts, I’d like to say that on the GBP/JPY daily time frame the pair had reached a very strong level of resistance at 162.80, which is visualized by the blue line of the Bollinger Bands indicator and the green line of (EMA)89. What is more, below that resistance level there are two doji candlesticks which are an obvious signal that the pair is ready for a reversal.

The same type of signals can be seen on the daily and shorter time frames of the other JPY pair charts.

I am saying this because I have always been convinced that the fundamentals, which are undoubtedly the engine and catalyst of the movement of the different currency pairs, inevitably have their reflection on the charts. That is why it is very important to me to be able to interpret what the market wishes to tell us through them. Thus we always have to strive to become better and better in our ability to read them.