#GBPJPY @ 166.063 has surrendered the immediate support of 166.00 on higher-than-expected Japan GDP data. (Pivot Orderbook analysis)

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• GBP/JPY has surrendered the immediate support of 166.00 on higher-than-expected Japan GDP data.
• UK next PM Liz Truss has picked battle against higher energy prices and inflation rate.
• The BOJ has failed in accelerating household spending despite a prudent monetary policy.

The pair currently trades last at 166.063.

The previous day high was 166.02 while the previous day low was 164.2. The daily 38.2% Fib levels comes at 165.32, expected to provide support. Similarly, the daily 61.8% fib level is at 164.89, expected to provide support.

The GBP/JPY pair has sensed selling pressure after failing to sustain above 166.20 in the early Tokyo session. The asset has slipped below 166.00 after the release of upbeat Japanese Gross Domestic Product (GDP) data. The Japanese GDP data has landed at 0.9%, higher than the forecasts of 0.7% and the prior release of 0.5%. Also, the annual data has improved meaningfully to 3.5% against the expectations and the prior print of 2.9% and 2.2% respectively.

This week, downbeat Japan’s Overall Household Spending data weakened the yen bulls. The economic data declined to 3.4% than the expectations of 4.2% and the prior release of 3.5%. Despite the prolonged efforts of the Bank of Japan (BOJ) in accelerating overall demand by flushing liquidity into the economy continuously, household expenditure remained vulnerable.

Earlier, the cross displayed a sheer upside move right from a low of 161.00 after Liz Truss was declared as the next UK Prime Minister. The announcement brought a sense of political stability to the UK economy as UK political environment was filthy after the resignation of ex-UK PM Boris Johnson. Apart from that, Truss picked a battle with accelerating energy prices and inflation rate, which strengthened the pound bulls.

Conservative party leader announced a fund of 130 billion pounds for freezing bills. Under this, the new cabinet will set a fixed unit price for energy suppliers to sell gas & electricity to households. Adding to that, taxes for households will be trimmed, which will remain supportive for them to combat higher payouts. Also, the Cabinet will focus on making more investments and scaling up the employment generation process.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 166.03 at the time of writing. Pair opened at 165.69 and is trading with a change of 0.21 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 162.19, 50 SMA 163.02, 100 SMA @ 162.92 and 200 SMA @ 159.52.

The previous day high was 166.02 while the previous day low was 164.2. The daily 38.2% Fib levels comes at 165.32, expected to provide support. Similarly, the daily 61.8% fib level is at 164.89, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 164.59, 163.48, 162.77
• Pivot resistance is noted at 166.41, 167.12, 168.23

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