The GBPJPY at a rate of 181.493 has established a safety margin near 181.00 due to the shift in focus towards the inflation in the UK.
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- GBP/JPY has gauged a cushion around 181.00 as the focus has shifted to UK inflation.
The pair currently trades last at 181.493.
The previous day high was 182.14 while the previous day low was 181.22. The daily 38.2% Fib levels comes at 181.57, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.79, expected to provide resistance.
The GBP/JPY pair is well-supported around 181.00 in the Asian session. The cross is getting the attention of buyers ahead of the United Kingdom Consumer Price Index (CPI) data (May), which will release on Wednesday.
Price pressures in the UK region have remained extremely stubborn in comparison with other developed economies after the pandemic. Major factors that have been fueling inflationary pressures in the Pound Sterling area are labor shortages and 45-year high food inflation.
The event of Brexit and early retirements taken by individuals have been crucial contributors to labor shortages, which forced firms to offer significantly higher payouts to offset the extreme demand for fresh talent.
As per the preliminary report, UK’s monthly headline inflation (May) is expected to show a pace of 0.4%, slower than the pace of 1.2% registered in April. Annualized headline CPI is seen softening to 8.5% vs. the prior release of 8.7% while core inflation that excludes oil and food prices is seen steady at 6.8%.
The UK inflation data will be followed by the interest rate decision from the Bank of England (BoE). Taking into account, tight Employment and stubborn inflation, BoE Governor Andrew Bailey is expected to hike interest rates further by 25 basis points (bps) to 4.75%.
On the Tokyo front, the consistent decline in the Japanese Yen has propelled expectations of a stealth intervention by the Bank of Japan (BoJ) in the FX domain. The BoJ has a history of intervening in FX operations to avoid further damage to their domestic currency.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 181.39 at the time of writing. Pair opened at 181.61 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 181.39 |
| 1 | Today Daily Change | -0.22 |
| 2 | Today Daily Change % | -0.12 |
| 3 | Today daily open | 181.61 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 175.1, 50 SMA 171.34, 100 SMA @ 166.61 and 200 SMA @ 165.2.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 175.10 |
| 1 | Daily SMA50 | 171.34 |
| 2 | Daily SMA100 | 166.61 |
| 3 | Daily SMA200 | 165.20 |
The previous day high was 182.14 while the previous day low was 181.22. The daily 38.2% Fib levels comes at 181.57, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.79, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 181.18, 180.75, 180.27
- Pivot resistance is noted at 182.09, 182.57, 183.0
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 182.14 |
| Previous Daily Low | 181.22 |
| Previous Weekly High | 182.04 |
| Previous Weekly Low | 174.36 |
| Previous Monthly High | 174.28 |
| Previous Monthly Low | 167.84 |
| Daily Fibonacci 38.2% | 181.57 |
| Daily Fibonacci 61.8% | 181.79 |
| Daily Pivot Point S1 | 181.18 |
| Daily Pivot Point S2 | 180.75 |
| Daily Pivot Point S3 | 180.27 |
| Daily Pivot Point R1 | 182.09 |
| Daily Pivot Point R2 | 182.57 |
| Daily Pivot Point R3 | 183.00 |
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