#GBPJPY @ 167.286 remains under some selling pressure for the second successive day on Wednesday. (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)]

• GBP/JPY remains under some selling pressure for the second successive day on Wednesday.
• Softer UK consumer inflation figures undermine the British Pound and act as a headwind.
• A positive risk tone dents the JPY’s relative safe-haven status and lends support to the cross.

The pair currently trades last at 167.286.

The previous day high was 169.28 while the previous day low was 167.1. The daily 38.2% Fib levels comes at 167.93, expected to provide resistance. Similarly, the daily 61.8% fib level is at 168.45, expected to provide resistance.

The GBP/JPY cross edges lower for the second straight day on Wednesday and retreats further from over a one-month high, around the 169.25 area touched the previous day. The cross remains depressed below the mid-167.00s through the early European session and drifts back closer to the weekly low in reaction to softer UK consumer inflation figures.

The British Pound weakens a bit after the UK Office for National Statistics (ONS) reported that the headline CPI decelerated from the 2% rise reported in the previous month and rose 0.4% MoM in November.
Furthermore, the yearly rate eased from 11.1% in October to 10.7% during the reported month. Meanwhile, the core inflation gauge, which excludes volatile food and energy items, come in at a 6.3% YoY rate in November as compared to 6.5% in October and anticipated. The data, however, does little to alter market expectations for a 50 bps rate hike by the Bank of England on Thursday and helps limit the downside for the GBP/JPY cross.

The Japanese Yen, on the other hand, struggles to gain any meaningful traction and fails to provide any impetus to the GBP/JPY cross. A generally positive risk tone, bolstered by the optimism over the easing of COVID-19 curbs in China and firming expectations for a less aggressive policy tightening by the Fed, seems to act as a headwind for the safe-haven JPY. This, in turn, supports prospects for the emergence of some dip-buying around the cross, warranting some caution for aggressive bearish traders. Hence, it will be prudent to wait for a sustained weakness below the 167.00 mark before positioning for any further depreciating move.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 167.33 at the time of writing. Pair opened at 167.64 and is trading with a change of -0.18 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 166.97, 50 SMA 166.74, 100 SMA @ 164.53 and 200 SMA @ 163.38.

The previous day high was 169.28 while the previous day low was 167.1. The daily 38.2% Fib levels comes at 167.93, expected to provide resistance. Similarly, the daily 61.8% fib level is at 168.45, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 166.73, 165.83, 164.55
• Pivot resistance is noted at 168.92, 170.19, 171.1

[/s2If]
Join Our Telegram Group