#GBPJPY @ 173.492 retreats from the highest levels since February 2016 as traders pare recent gains amid (Pivot Orderbook analysis)

…
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 retreats from the highest levels since February 2016 as traders pare recent gains amid
• UK
• holiday.
• Off in major bond markets, recently hawkish BoJ concerns versus doubts BoE hawks prod pair buyers.
• Risk catalysts are important for clear directions, US debt limit passage is the key.

The pair currently trades last at 173.492.

The previous day high was 173.74 while the previous day low was 172.22. The daily 38.2% Fib levels comes at 173.16, expected to provide support. Similarly, the daily 61.8% fib level is at 172.8, expected to provide support.

GBP/JPY bulls take a breather at seven-year high as the UK markets are off due to Memorial Day on Monday, allowing the cross-currency buyers to pare recent gains around 173.50 amid a sluggish start to the key week.

That said, the quote’s latest pullback from the highest levels since February 2016 takes clues from the market’s mixed sentiment, as well as recent hawkish concerns about the Bank of Japan (BoJ). Also exerting downside pressure on the GBP/JPY is the doubt on the Bank of England’s (BoE) capacity to defend the rate hike bias.

The US policymakers’ initial agreement to avoid the debt payment default allows the markets to remain optimistic, favoring the pair’s upside momentum. However, some of the leftists and rightists are against the compromises involved to reach the much-awaited deal, which in turn prods the positive vibes from the development as the agreement needs to pass through the House on Wednesday and the Senate by June 05 to avoid the looming ‘catastrophic’ default.

Elsewhere, Friday’s mostly upbeat UK Retail Sales figures struggle to back the BoE hawks amid looming economic fears and recent easing in the inflation numbers. Furthermore, expectations of the BoJ’s higher rates in the future also weigh on the GBP/JPY price amid the sluggish session.

On a different page, Friday’s retreat in the US Treasury bond yields from a 10-week high also exerts downside pressure on the GBP/JPY price amid a sluggish session.

Moving on, the GBP/JPY traders should pay attention to the risk catalysts, mainly to the headlines about the US debt ceiling deal passage and the central bank clues.

Although overbought RSI hints at the further pullback in GBP/JPY price, buyers remain hopeful unless the quote stays beyond a seven-month-old previous resistance line, around 172.50 by the press time.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 173.49 at the time of writing. Pair opened at 173.58 and is trading with a change of -0.05% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 170.9, 50 SMA 167.24, 100 SMA @ 164.06 and 200 SMA @ 164.18.

The previous day high was 173.74 while the previous day low was 172.22. The daily 38.2% Fib levels comes at 173.16, expected to provide support. Similarly, the daily 61.8% fib level is at 172.8, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 172.61, 171.65, 171.09
• Pivot resistance is noted at 174.14, 174.7, 175.66

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group