Chart of the day - GBPJPY (30.12.2022)

The GBPJPY pair extends yesterday's losses as BoJ announced the third day of bond market moves, which supports Yen as investors expect a more hawkish approach from Japanese policymakers in 2023. Meanwhile, the uncertain covid situation in China and risk-negative announcements from UK Prime Minister Sunak weigh on the pound. According to the Times, PM Sunak is ready to halve financial support on energy bills for businesses, amid concerns about the cost. From technical point of view, pair broke below major support at 160.40, which is marked with lower limit of the 1:1 structure and 50.0% Fibonacci retracement of the recent upward wave. If current sentiment prevails, downward impulse may deepen towards key support at 157.65, which coincides with 61.8% retracement and lower limit of the wedge formation.

GBPJPY, D1 interval. Source: xStation5