GBPJPY at 184.119 remains cautious following two consecutive days of losses but recovers from its lowest point in a week.
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- GBP/JPY stays defensive after two-day losing streak, bounces off one-week low.
The pair currently trades last at 184.119.
The previous day high was 184.56 while the previous day low was 183.54. The daily 38.2% Fib levels comes at 183.93, expected to provide support. Similarly, the daily 61.8% fib level is at 184.17, expected to provide resistance.
GBP/JPY floats above 184.00 while struggling to defend the early-day rebound from a one-week low during Monday’s Asian session. In doing so, the cross-currency pair justifies the mixed headlines about the UK and Japan amid sluggish markets due to the US Labor Day holiday.
“We are on track to halve inflation this year and by sticking to our plan we will ease the pressure on families and businesses alike,” said UK Finance Minister Jeremy Hunt during the weekend per Reuters. The policymaker, however, also told the BBC that he thinks of witnessing a blip in inflation in September but also anticipated the fall in inflation to around 5.0% as per the Bank of England (BoE) forecasts.
The same joins the recently downbeat concerns about the BoE’s rate hike and prod the GBP/JPY rebound. However, Friday’s revised British economic data joins the sticky inflation in the UK to keep the buyers hopeful.
On the other hand, the recent Japan Monetary Base data for August suggests an increase in liquidity with 1.2% YoY growth versus -1.3% prior. The same joins the market’s hawkish expectations from the Bank of Japan (BoJ) to defend the Japanese Yen (JPY) buyers despite the cautious optimism in the market and inactive bond markets, due to the US holiday.
It’s worth observing that the BoJ policymakers have been defending the ultra-easy monetary policy and putting a floor under the GBP/JPY price, especially when the BoE Officials are hawkish.
Amid these plays, the benchmark US 10-year Treasury bond yields dropped in the last two consecutive weeks after rising to the highest levels since 2007, to 4.18% at the latest. Further, the Wall Street benchmarks also improved in the recent few days, despite Friday’s sluggish closing, while the S&P 500 Futures printed mild gains by the press time.
Moving on, BoE Monetary Policy Report Hearings and Japan’s second-quarter (Q2) Gross Domestic Product (GDP) will be crucial for clear directions. Should the Japanese growth data improve and the BoE policymakers sound cautious, the GBP/JPY may witness the bear’s dominance.
GBP/JPY stays beneath the 21-DMA hurdle, around 184.50, despite the latest rebound, which in turn joins the bearish signals to direct the sellers toward the 50-DMA support of 183.00.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 184.07 at the time of writing. Pair opened at 184.1 and is trading with a change of -0.02% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 184.07 |
| 1 | Today Daily Change | -0.03 |
| 2 | Today Daily Change % | -0.02% |
| 3 | Today daily open | 184.1 |
The pair is trading below its 20 Daily moving average @ 184.52, above its 50 Daily moving average @ 182.97 , above its 100 Daily moving average @ 177.78 and above its 200 Daily moving average @ 169.98
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 184.52 |
| 1 | Daily SMA50 | 182.97 |
| 2 | Daily SMA100 | 177.78 |
| 3 | Daily SMA200 | 169.98 |
The previous day high was 184.56 while the previous day low was 183.54. The daily 38.2% Fib levels comes at 183.93, expected to provide support. Similarly, the daily 61.8% fib level is at 184.17, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 183.57, 183.05, 182.55
- Pivot resistance is noted at 184.59, 185.08, 185.61
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 184.56 |
| Previous Daily Low | 183.54 |
| Previous Weekly High | 186.07 |
| Previous Weekly Low | 183.54 |
| Previous Monthly High | 186.77 |
| Previous Monthly Low | 180.46 |
| Daily Fibonacci 38.2% | 183.93 |
| Daily Fibonacci 61.8% | 184.17 |
| Daily Pivot Point S1 | 183.57 |
| Daily Pivot Point S2 | 183.05 |
| Daily Pivot Point S3 | 182.55 |
| Daily Pivot Point R1 | 184.59 |
| Daily Pivot Point R2 | 185.08 |
| Daily Pivot Point R3 | 185.61 |
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