The GBP/JPY rallies more than 400 pips

The Pound versus the Yen has risen significantly and it has reached the 179.00 round number level after the Bank of Japan announced that it will more than triple its Japanese asset purchases along with the Government’s Pension Fund. The rise of economic stimulus in Japan has hurt the Yen and that is why we have seen the strong rally on the GBP/JPY. However, we know that the markets don’t rise in a straight line and the pair may find some resistance around this round number level. Non the less, if we do see a breakout of the 179.00 level, then the pair has a clear path all the way to the 180.70 level, which is its last month high.