#GBPJPY @ 151.126 finds less-confident pullback below 150.00, BOJ Kuroda’s speech eyed (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE 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_level4)]

The pair currently trades last at 151.126.

The previous day high was 160.47 while the previous day low was 155.45. The daily 38.2% Fib levels comes at 157.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 158.55, expected to provide resistance.

The GBP/JPY pair is displaying a short-lived pullback after dropping to near 148.00 in the Tokyo session. The less confident pullback has pushed the cross to near 152.00, however, the downside remains favored as an intervention of the Bank of Japan (BOJ) into the currency market has strengthened the Japanese yen against the pound.

The decision of an intervention in the currency markets came after the BOJ continued its dovish stance on interest rates. BOJ Governor Haruhiko Kuroda believes that the Japanese economy needs a cushion to offset the impact of the Covid-19 pandemic. The central bank intervened in the Fx moves as it believes that the current yen valuation provided by the market participants doesn’t justify the fundamentals.

Meanwhile, Japanese Finance Minister Shunichi Suzuki cited that “Recent one-sided and rapid yen moves are not desirable,” as per Reuters.

Japanese Chief Cabinet Secretary Hirokazu Matsuno is concerned about Russia’s nuclear warning and has decided to ban exports of chemical weapon-related goods to Russia as an additional sanction on Moscow’s action in Ukraine,”

Going forward, the speech from BOJ Governor Haruhiko Kuroda will be of utmost importance. Investors are expecting more insights into the path of intervention in the currency markets by the central bank to safeguard the depreciating yen.

On the UK front, a deepening energy crisis, soaring inflationary pressures, and rising interest rates without the support of economic fundamentals are weakening the pound bulls. It seems that the optimism generated by novel UK Prime Minister Liz Truss has started fading away.

Going forward, the UK Gross Domestic Product (GDP) data will remain in focus. The GDP data for the second quarter is expected to decline by 0.1% in line with the prior reading. Also, the annual GDP data will grow at a steady pace of 2.9%.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 150.62 at the time of writing. Pair opened at 155.64 and is trading with a change of -3.23 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 163.18, 50 SMA 163.02, 100 SMA @ 163.01 and 200 SMA @ 160.31.

The previous day high was 160.47 while the previous day low was 155.45. The daily 38.2% Fib levels comes at 157.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 158.55, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 153.9, 152.17, 148.89
• Pivot resistance is noted at 158.92, 162.2, 163.93

[/s2If]
Join Our Telegram Group