GBPJPY: overheating signals — correction in focus

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GBPJPY: overheating signals — correction in focusBritish Pound/Japanese YenFX:GBPJPYInvestWorld_777GBPJPY remains highly sensitive to yield differentials and central bank rhetoric. The British pound is supported by the relatively hawkish stance of the Bank of England, but markets increasingly price in economic slowdown risks in the UK. At the same time, the Japanese yen stays weak due to the Bank of Japan’s accommodative policy, yet current cross levels appear stretched. Growing discussions about potential BoJ policy adjustments and rising global risk aversion increase the probability of a corrective pullback after an extended rally. Technically, price remains in a strong uptrend but is trading near Fibonacci extension levels. A clear CCI divergence signals weakening momentum. The primary scenario points to a corrective move toward the 0.705–0.5 Fibonacci zones, where buy limit interest is expected. An alternative scenario allows for a final push higher followed by a sharp pullback. Trading from current levels requires caution and disciplined risk management.