The GBPJPY currency pair, currently trading at 181.437, has shown signs of improvement from its previous level of 181.00. This upward movement is a result of market expectations for the Bank of England (BoE) to announce a larger increase in interest rates in the near future.

…
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 has delivered a recovery move from 181.00 as BoE is expected to announce a bigger rate hike ahead.

The pair currently trades last at 181.437.

The previous day high was 182.3 while the previous day low was 180.2. The daily 38.2% Fib levels comes at 181.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.0, expected to provide support.

The GBP/JPY has found support after a soft corrective move to near 181.15 in the Tokyo session. The cross has sensed some buying interest as investors are hoping that the Bank of England (BoE) will announce a consecutive fat rate hike in its monetary policy meeting in August.

BoE Governor Andrew Bailey raised interest rates by 50 basis points (bps) to 5% in June while investors were anticipating a small interest rate hike of 25 bps. A surprise jump in May’s headline Consumer Price Index (CPI) and fresh highs in core inflation at 7.1% were sufficient to force the central bank to go for a big rate hike.

Going forward, investors will get more cues after the release of June’s inflation report, which is scheduled for Wednesday at 06.00 GMT. As per the consensus, monthly headline CPI reported a pace of 0.4% lower than the prior pace of 0.7%. While annualized inflation is expected to decelerate to 8.2% against the former release of 8.7%. Core inflation is expected to remain steady at 7.1%.

Knowing the fact that core CPI would remain elevated, the BoE will continue to hike interest rates further. Meanwhile, households in the United Kingdom economy are facing the burden of higher interest rates. UK’s property website cited that prices asked for housing have dropped straight for the second month. The overall demand for the property sector has dropped as investors are avoiding higher interest rate obligations.

On the Japanese Yen front, investors are awaiting the interest rate decision by the Bank of Japan (BoJ), which will be announced next week. BoJ’s former top economist, Seisaku Kameda, forecasted that the central bank won’t do any tweaks in the interest rate policy. He further added the central bank will keep forecasts for FY2024 and 2025 roughly unchanged.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 181.37 at the time of writing. Pair opened at 181.82 and is trading with a change of -0.25 % .

The pair is trading below its 20 Daily moving average @ 182.32, above its 50 Daily moving average @ 176.88 , above its 100 Daily moving average @ 170.78 and above its 200 Daily moving average @ 167.17

The previous day high was 182.3 while the previous day low was 180.2. The daily 38.2% Fib levels comes at 181.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.0, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 180.58, 179.34, 178.48
• Pivot resistance is noted at 182.68, 183.54, 184.78

[/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...