The Pound Sterling (GBP) extends gains against the Japanese Yen (JPY), marking weekly gains as BoJ’s mixed signals on interest rates fuel Yen selling.

Key Factors:

• BoJ Uncertainty: Conflicting messages from BoJ officials increase speculation about the end of negative interest rates, weakening the Yen.
• Bullish Pattern: A ‘bullish harami’ candlestick strengthens GBP/JPY’s upward momentum.

Technical Outlook:

• GBP/JPY Recovery: The pair rebounds from the 50-day moving average, heading towards resistance at 190.00.
• Bullish Potential: A break above 190.00 could trigger a further rally towards the year-to-date high of 191.32.
• Bearish Risk: A pullback below the Kijun Sen (189.35) and the March 11 low (187.96) would signal a potential reversal.