The GBP/JPY currency pair has experienced a significant decline, reaching a level close to 180.50, due to increased optimism regarding a potential adjustment in the Bank of Japan’s Yield Curve Control policy.

…
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/JPP has sharply dropped to near 180.50 as hopes of a tweak in BoJ’s YCC have strengthened.

The pair currently trades last at 180.610.

The previous day high was 182.0 while the previous day low was 180.8. The daily 38.2% Fib levels comes at 181.25, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.54, expected to provide resistance.

The GBP/JPY pair has stretched its south-side run to near the critical support of 180.50 in the London session. The cross has faced immense selling pressure as investors are hoping a tweak in the Yield Curve Control (YCC) by the Bank of Japan (BoJ) in its monetary policy on July 28.

Inflation in Japan is becoming more demand-driven after Japan’s Monthly Labor Survey for May showed confirmation of quickening wage growth after enormous efforts from the BoJ by keeping the interest rate policy ultra-dovish. Earlier, higher import prices were majorly driving inflationary pressures.

The Pound Sterling is struggling to find traction against the Japanese Yen despite accelerating fears of more fat interest rate hikes from the Bank of England (BoE). UK Finance Minister Jeremy Hunt conveyed this week that Britain’s government and the BoE will do whatever is necessary to bring down inflation.

The employment report released on Tuesday showed that wage pressures are sticky but jobless claims rose as job offers have dropped sharply. UK firms are avoiding their dependence on credit to avoid higher interest obligations. Also, households are facing the burden of higher interest rates, which has impacted demand for the housing sector dramatically.

Meanwhile, directors at International Monetary Fund (IMF) have praised BoE policymakers for raising interest rates by half-a-percent to 5%. About the interest rate guidance, IMF believes that the UK central bank may have to keep interest rates high for an extended period if inflation pressures persist, as reported by Reuters.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 180.54 at the time of writing. Pair opened at 181.53 and is trading with a change of -0.55 % .

The pair is trading below its 20 Daily moving average @ 182.1, above its 50 Daily moving average @ 176.18 , above its 100 Daily moving average @ 170.23 and above its 200 Daily moving average @ 166.89

The previous day high was 182.0 while the previous day low was 180.8. The daily 38.2% Fib levels comes at 181.25, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.54, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 180.89, 180.24, 179.68
• Pivot resistance is noted at 182.09, 182.65, 183.29

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...