The GBP/JPY cross is basing out, reinforcing the case for further yen weakness. Economists at Credit Suisse expect the pair to grind higher towards the 163.91 mark.

Broken 156.62/06 highs to hold the downside

“GBP/JPY recently completed a near-term base above 152.86 and has subsequently surged higher, breaking above the 156.08/156.62 highs of 2018 and the previous 2021 high.”

“With a major base already established in February 2021, we look for a move to next resistance at 159.80, then 163.91.”

“The broken 156.62/06 highs should now floor the market over the medium-term.”