GBPJPY, currently at 174.606, has pulled back from peak levels and is now stabilizing near 174.50.
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- The pair currently trades last at 174.606.
- Pivot support is noted at 174.57, 173.82, 173.33
- Pivot resistance is noted at 175.8, 176.29, 177.04
The previous day high was 175.54 while the previous day low was 174.31. The daily 38.2% Fib levels comes at 175.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 174.78, expected to provide resistance.
The GBP/JPY soared to a fresh cycle high of 175.77 and then turned course to negative territory finding support at the 174.50 area. In that sense, rising US bond yields and dovish bets on Bank of Japan’s (BoJ) decision on Friday apply further pressure on the Yen. Markets await labor-market data from the UK on Tuesday and US inflation.
For Tuesday’s session, labor-market data from the UK is anticipated to show that the number of individuals claiming jobless benefits decreased by 9.6K in May, compared to the previous figure of 46.7 K. The unemployment rate is projected to increase slightly to 4%, while average earnings, both including and excluding bonuses, are expected to accelerate during the same period. As central banks tend to have a “full employment” policy, the health of the labor-market is closely followed by policymakers and hence shapes the expectation of their decisions.
That being said, Bank of England´s (BoE) Jonathan Haskel highlighted the importance of closely monitoring inflation momentum and persistence, indicating the possibility of further interest rate hikes to counter inflation risks. In addition, Catherine Mann showed on Monday her concerns with sticky core inflation figures and added that she is waiting for an “analysis of data” to decide the next vote. In that sense, the hawkish stance from the BoE provides traction for the Pound Sterling.
On the other hand, Japan’s PPI contracted by 0.7% MoM in May, exceeding the expected decline of 0.2%, while Machine Tool Orders saw a substantial contraction of 22%. These weak economic data and slowing inflation have raised expectations for a more dovish stance from Governor Ueda and policymakers, indicating a preference for accommodative monetary policies. WIRP (World Interest Rate Possibilities) suggests a less than 10% chance of a policy liftoff for Friday’s BoJ meeting, with probabilities increasing to 55% by December.
According to the daily chart, the GBP/JPY holds a neutral to the bullish outlook for the short term as the bulls seemed to have taken a step back after being rejected at the overbought area. However, technical indicators remain positive, indicating that the market may be preparing for another leg up.
If GBP/JPY manages to move higher, the next resistances to watch are at the daily high at 175.75, followed by the 176.00 area and the 176.50 zone. On the other hand, if the cross loses ground, immediate support levels are seen at the 174.45 area, followed by the 174.00 zone and the 20-day Simple Moving Average (SMA) at 173.10.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 174.57 at the time of writing. Pair opened at 175.31 and is trading with a change of -0.42 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 174.57 |
| 1 | Today Daily Change | -0.74 |
| 2 | Today Daily Change % | -0.42 |
| 3 | Today daily open | 175.31 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 172.97, 50 SMA 169.63, 100 SMA @ 165.56 and 200 SMA @ 164.79.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 172.97 |
| 1 | Daily SMA50 | 169.63 |
| 2 | Daily SMA100 | 165.56 |
| 3 | Daily SMA200 | 164.79 |
The previous day high was 175.54 while the previous day low was 174.31. The daily 38.2% Fib levels comes at 175.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 174.78, expected to provide resistance.
Note the levels of interest below:
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 175.54 |
| Previous Daily Low | 174.31 |
| Previous Weekly High | 175.54 |
| Previous Weekly Low | 172.67 |
| Previous Monthly High | 174.28 |
| Previous Monthly Low | 167.84 |
| Daily Fibonacci 38.2% | 175.07 |
| Daily Fibonacci 61.8% | 174.78 |
| Daily Pivot Point S1 | 174.57 |
| Daily Pivot Point S2 | 173.82 |
| Daily Pivot Point S3 | 173.33 |
| Daily Pivot Point R1 | 175.80 |
| Daily Pivot Point R2 | 176.29 |
| Daily Pivot Point R3 | 177.04 |
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