BOE voted unanimously today to leave interest rates on hold, no surprise votes to hike interest rates just yet despite talk by BoE governor Mark Carney that rates will be on the rise probably by year end.
The prospect of higher rates for the pound should give Sterling a boost against most currencies. But the Yen is particularly vulnerable, unlike the US dollar which will probably see interest rates rising soon too, this currency is in a phase of quantitative easing and Abe, the Japanese Prime Minister, has made it very clear that a depreciating Yen will help boost the economy. Looking at the day chart we can see a consolidation area in blue where price action has bounced of the Ichimoku cloud today. A break on the upside of that rectangle should lead to further increases. On the weekly chart we can see that a Bull trend is place and is not showing any signs of fatigue just yet.