The GBP/JPY currency pair launched off at 156.48 to trade before the Bank of England (BoE) rate announcement on Thursday. On the daily chart, the currency pair has been trading for the past five days within an ascending channel pattern.

According to FXStreet.com, the Bank of England’s interest rate decision will be released on Thursday, March 22, 2022, and it will remain at 0.75 percent this month, compared to 0.55 percent last month.

It is bullish for the GBP if the central bank boosts interest rates and is concerned about inflationary risks. The Bank of England is also pessimistic or bearish if it has a dovish outlook of the UK economy and keeps or lowers the interest rate.

And it’s assumed that the GBP/JPY currency pair would continue to rise because Japan’s National Consumer Price Index will be released on March 23, 2022, by the Japan Statistics Bureau. Economists expect it to stay at 0.3 percent in February, compared to a month earlier. It is a measure of price changes in a representative shopping basket of products and services at the retail level. Changes in purchasing patterns are measured by the CPI. Inflation has pulled down the value of the Japanese yen. A high reading is generally favorable for the JPY.

Conclusion

The currency pair GBP/JPY appears to be trading under a powerful ascending wedge pattern. It demonstrates that the market has a natural pro-health bias.