The pair of GBPJPY, trading at 185.328, experiences a decrease in strength and ends its two-day period of consecutive gains as Wednesday comes to an end.

…
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 loses momentum, snaps two-day winning streak on Wednesday.

The pair currently trades last at 185.328.

The previous day high was 185.78 while the previous day low was 184.08. The daily 38.2% Fib levels comes at 185.13, expected to provide support. Similarly, the daily 61.8% fib level is at 184.73, expected to provide support.

The GBP/JPY cross struggles to gain and edges lower to 185.28 during the early European session on Wednesday. Markets turn cautious amid the fear of FX intervention by the Bank of Japan (BoJ).

On Tuesday, the UK S&P Global/CIPS Composite PMI fell to 48.6 in August from 50.8 in the previous month. This figure marked its lowest level since January. Meanwhile, the Services PMI printed 49.5, which is below the 50 threshold indicating the contraction. Service providers witnessed a reversal in customer spending in August as higher financing costs, diminished business confidence, and constrained household finances all acted to dampen sales opportunities.

Traders anticipate that the Bank of England (BoE) is likely to raise 25 basis points (bps) in the upcoming meeting to combat high inflation. However, the BoE’s aggressive tightening of monetary policy might put some pressure on the British Pound (GBP) since investors are concerned about the effect on the UK economy.

Data released on Tuesday showed that Japanese Household Spending fell 5.0% year on year in July, below the market expectation of a 2.5% drop. This figure indicated the sixth straight month of decline. Apart from this, Japan’s top currency diplomat Masato Kanda stated a willingness to closely monitor Foreign Exchange movements with a sense of urgency while adding that all the options are on the table. Additionally, Bank of Japan (BoJ) board member Hajime Takata reaffirmed on Wednesday that the central bank will maintain easy monetary policy due to uncertainty on the economic and price outlook. It’s worth noting that the monetary policy divergence between the US and Japan might limit GBP/JPY’s downside for the time being.

Looking ahead, the UK S&P Global Construction PMI for August will be due on Wednesday in the European session. The attention will shift to Japan’s Gross Domestic Product (GDP) for the second quarter on Friday. The quarterly growth number is expected to expand 1.3% from the previous reading of 1.5%. Traders will find the trading opportunity around the GBPJPY cross.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 185.31 at the time of writing. Pair opened at 185.6 and is trading with a change of -0.16 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 184.8, 50 SMA 183.06, 100 SMA @ 178.16 and 200 SMA @ 170.17.

The previous day high was 185.78 while the previous day low was 184.08. The daily 38.2% Fib levels comes at 185.13, expected to provide support. Similarly, the daily 61.8% fib level is at 184.73, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 184.52, 183.44, 182.81
• Pivot resistance is noted at 186.23, 186.86, 187.94

[/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...