The GBPJPY has experienced an increase in value near the 182.55 range, currently trading at 182.654.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- GBP/JPY sees some gains at the 182.55 area.
The pair currently trades last at 182.654.
The previous day high was 182.95 while the previous day low was 181.26. The daily 38.2% Fib levels comes at 182.3, expected to provide support. Similarly, the daily 61.8% fib level is at 181.9, expected to provide support.
At the start of the week, the GBP lost ground against most of its rivals, including the USD, EUR, and CHF. A cautious market mood and investors consolidating gains which took the pair to a high since 2015 make it difficult for the Sterling to find demand. In addition, political tensions in the British public sector are encouraging investors to stay away from the Pound.
The British government is said to be considering disregarding certain recommendations from pay review bodies regarding increases in public sector wages. This decision is reported to be motivated by concerns over the potential negative impact on the economy, specifically on inflation. In that sense, uncertainty regarding the possibilities of union strikes clashing amid this decision made the GBP lose interest.
That being said, investors will look for additional clues on the Bank of England’s (BoE) next steps regarding monetary policy, on Wednesday, at the European Central Bank Forum in Sintra, Portugal.
Last Thursday, the BoE opted for a hawkish surprise, hiking rates by 50 basis points while markets expected 25 bps, and the statement hinted at additional increases this year. The surprise hike as well as Governor Bailey’s commentary from Wednesday may continue to have an impact on Sterling’s price dynamics.
Most economists polled by Reuters predict that the Bank of Japan (BoJ) will step in to halt the Yen’s decline if the USD/JPY reaches 145.00. In the meantime, the JPY is currently weakening due to soft inflation figures and the BoJ’s dovish stance.
Technically speaking, the GBP/JPY maintains a bullish outlook for the short term, as per indicators on the daily chart. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both showing strength, standing in positive territory, and the pair trades above its main moving averages, suggesting that the buyers are in charge. However, both indicate overbought conditions so further downside should not be taken off the table.
If GBP/JPY manages to move higher, the next resistances to watch are at the 183.00 zone, followed by the 183.50 zone and the 184.00 area. On the other hand, the 181.20 level remains the key support level for the cross. If broken, the 180.00 zone and 179.00 level could come into play.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 182.56 at the time of writing. Pair opened at 182.67 and is trading with a change of -0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 182.56 |
| 1 | Today Daily Change | -0.11 |
| 2 | Today Daily Change % | -0.06 |
| 3 | Today daily open | 182.67 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 176.92, 50 SMA 172.59, 100 SMA @ 167.53 and 200 SMA @ 165.54.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 176.92 |
| 1 | Daily SMA50 | 172.59 |
| 2 | Daily SMA100 | 167.53 |
| 3 | Daily SMA200 | 165.54 |
The previous day high was 182.95 while the previous day low was 181.26. The daily 38.2% Fib levels comes at 182.3, expected to provide support. Similarly, the daily 61.8% fib level is at 181.9, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 181.64, 180.6, 179.94
- Pivot resistance is noted at 183.33, 183.99, 185.03
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 182.95 |
| Previous Daily Low | 181.26 |
| Previous Weekly High | 182.95 |
| Previous Weekly Low | 179.92 |
| Previous Monthly High | 174.28 |
| Previous Monthly Low | 167.84 |
| Daily Fibonacci 38.2% | 182.30 |
| Daily Fibonacci 61.8% | 181.90 |
| Daily Pivot Point S1 | 181.64 |
| Daily Pivot Point S2 | 180.60 |
| Daily Pivot Point S3 | 179.94 |
| Daily Pivot Point R1 | 183.33 |
| Daily Pivot Point R2 | 183.99 |
| Daily Pivot Point R3 | 185.03 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
