The uptrend continues. The rates have already reached the highest level for 5.5 years, and they are not going to stop there. The 160 JPY mark is more than real, and would be overcome in the near future, despite the transition to the overbought zone. The pound is currently considered as one of the strongest currencies, while the yen is now the most vulnerable and very dependent on external factors. The monetary policy of the UK and Japan cannot be compared - each of them is completely the opposite from monetary policy, but the economic situation is slightly different because inflation in Britain is high, while in Japan it is lower than anywhere else.
The GBP, despite the aggravation of its long-standing disease called Brexit, has every chance of surpassing the yen in the near future. The extremely aggressive monetary policy of the Bank of England remains the main trigger for the pound. The rate was raised last week to 0.5 points, and this is not the last increase this year, while the Bank of Japan is unlikely to change the rate in the foreseeable future, since the economy's targets are not achievable.
This week, demand for risky assets is increasing; stock markets are rising. The focus is on the UK's GDP for the 4th quarter. However, next week will be the most volatile when Japan's GDP, the trade balance is expected to be published, and in Britain - unemployment data, consumer price index, retail sales volumes. At the moment, we can see the exceptional superiority of the pound in all indicators, in comparison with the yen, and resolutely open the deals to Buy. Technical analysis tools also indicate the effectiveness of the deals on the trend.
