On Wednesday, the GBPJPY currency pair encountered a certain amount of selling pressure at a rate of 183.080. However, this resistance did not lead to a sustained decline in value.

…
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 meets with some supply on Wednesday, albeit lacks follow-through.

The pair currently trades last at 183.080.

The previous day high was 183.49 while the previous day low was 182.72. The daily 38.2% Fib levels comes at 183.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.02, expected to provide support.

The GBP/JPY cross attracts some sellers near the 50-day Simple Moving Average (SMA) during the Asian session on Wednesday and erodes a part of the previous day’s positive move. Spot prices, however, manage to hold above the 183.00 mark as traders seem reluctant to place aggressive bets and prefer to wait for the latest UK consumer inflation figures.

The headline UK CPI is anticipated to have accelerated to 7.1% in August from 6.8% previous, while the core reading, which excludes seasonally volatile food and energy prices, is seen edging lower to 6.8% YoY rate from 6.9% in July. A surprisingly higher print will suggest that wage pressures are still feeding through into higher prices and keep the door open for further policy tightening by the Bank of England (BoE). This, in turn, should benefit the British Pound and provide a goodish lift to the GBP/JPY cross.

Any meaningful upside, however, seems limited in the wake of diminishing odds for more aggressive policy tightening by the BoE. In fact, BoE Governor Andrew Bailey had told lawmakers earlier this month that the central bank is now “much nearer” to ending its run of interest rate increases. Furthermore, reviving recession fears, along with signs that the UK labour market is cooling, might put pressure on the BoE to pause its rate-hiking cycle soon. Hence, the market focus will remain glued to the crucial BoE decision on Thursday.

The attention will then shift to the highly-anticipated Bank of Japan (BoJ) meeting on Friday amid speculations for an imminent shift in the central bank’s dovish stance. BoJ Governor Kazuo Ueda, in an interview with Yomiuri newspaper, had said that ending negative interest rates is among the options available if the central bank becomes confident that prices and wages will keep going up sustainably. This, in turn, suggests that the BoJ could move away from ultra-loose policy and contribute to capping gains for the GBP/JPY cross.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 183.1 at the time of writing. Pair opened at 183.23 and is trading with a change of -0.07 % .

The pair is trading below its 20 Daily moving average @ 184.12, below its 50 Daily moving average @ 183.2 , above its 100 Daily moving average @ 179.69 and above its 200 Daily moving average @ 171.01

The previous day high was 183.49 while the previous day low was 182.72. The daily 38.2% Fib levels comes at 183.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.02, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 182.8, 182.38, 182.04
• Pivot resistance is noted at 183.58, 183.92, 184.34

[/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...