The pound yen and the probability of completing the harmonic

Basic pair analysis

The Pound-Yen pair rose during today's trading on Monday in light of the scarcity of economic data today from Britain and Japan.

Investors continue to assess the Bank of Japan's policy outlook, with expectations growing that it will raise interest rates again in response to persistent inflation.

Data released last week also showed that core inflation in Japan unexpectedly accelerated to 3.5%, the highest level in more than two years, strengthening the argument for further tightening monetary policy.

The pair at the technical level

The pair is trading higher today after rebounding last Friday from the support levels of 192.00.

We still expect further ascent with the aim of completing the described harmonic models, especially after breaking through the levels of 194.80 and closing higher, then we expect a continuation of the ascent towards the levels of completing the harmonic models near the levels of 195.70 to 196.00.

We then target the levels of 194.80 and then 193.70.

The bearish scenario fails if the 196.50 levels are breached and close above.