On Wednesday, the GBPJPY at 180.645 garnered interest from certain buyers and halted the downward correction from a high point that spanned multiple years.
…
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 attracts some buyers on Wednesday and stalls this week’s pullback from a multi-year top.
The pair currently trades last at 180.645.
The previous day high was 182.1 while the previous day low was 179.93. The daily 38.2% Fib levels comes at 180.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.27, expected to provide resistance.
The GBP/JPY cross edges higher during the Asian session on Wednesday and recovers a part of the previous day’s slide to levels just below the 180.00 psychological mark. The cross currently trades with a mild positive bias, around the 180.70-180.75 area, and for now, seems to have stalled its retracement slide from the highest level since November 2015 touched on Monday.
The Japanese Yen (JPY) weakens a bit after the minutes of the April Bank of Japan (BoJ) meeting showed that the nine-member board saw the need to maintain ultra-loose policy given uncertainty over the global economy and the wage outlook. This turns out to be a key factor lending some support to the GBP/JPY cross. Apart from this, expectations that the Bank of England (BoE) will be far more aggressive in policy tightening to combat stubbornly high inflation act as tailwind spot prices.
In fact, the BoE is widely expected to hike the benchmark rates by 25 bps on Thursday, to 4.75% or the highest since April 2008. Moreover, the markets are pricing in the possibility of a bigger, 50 bps lift-off. The bets were reaffirmed by the upbeat UK jobs data released last week, which came in to show near-record wage growth and has led to concerns about inflationary pressures in the country. Hence, the focus will remain on the release of the latest UK consumer inflation figures on Wednesday.
The headline UK CPI is anticipated to come in at 0.4% for May, down from 1.2% registered in the previous month. Meanwhile, the yearly rate is seen easing to 8.5% as compared to the 8.7% print in April and core CPI, which excludes oil and food prices, is forecasted to hold steady at 6.8%. Any positive surprise will reaffirm hawkish BoE expectations and boost the British Pound. However, rumours that the BoJ will intervene to support the domestic currency could cap gains for the GBP/JPY cross.
Traders might also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the key central bank event risk – the BoE monetary policy meeting on Thursday. Nevertheless, the aforementioned fundamental backdrop favours bullish traders and suggests that the path of least resistance for the GBP/JPY cross is to the upside. Hence, any meaningful pullback could still be seen as a buying opportunity, which, in turn, should help limit the downside for spot prices, at least for now.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 180.72 at the time of writing. Pair opened at 180.57 and is trading with a change of 0.08 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 180.72 |
| 1 | Today Daily Change | 0.15 |
| 2 | Today Daily Change % | 0.08 |
| 3 | Today daily open | 180.57 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 175.53, 50 SMA 171.63, 100 SMA @ 166.81 and 200 SMA @ 165.27.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 175.53 |
| 1 | Daily SMA50 | 171.63 |
| 2 | Daily SMA100 | 166.81 |
| 3 | Daily SMA200 | 165.27 |
The previous day high was 182.1 while the previous day low was 179.93. The daily 38.2% Fib levels comes at 180.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.27, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 179.63, 178.7, 177.47
- Pivot resistance is noted at 181.8, 183.03, 183.97
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 182.10 |
| Previous Daily Low | 179.93 |
| Previous Weekly High | 182.04 |
| Previous Weekly Low | 174.36 |
| Previous Monthly High | 174.28 |
| Previous Monthly Low | 167.84 |
| Daily Fibonacci 38.2% | 180.76 |
| Daily Fibonacci 61.8% | 181.27 |
| Daily Pivot Point S1 | 179.63 |
| Daily Pivot Point S2 | 178.70 |
| Daily Pivot Point S3 | 177.47 |
| Daily Pivot Point R1 | 181.80 |
| Daily Pivot Point R2 | 183.03 |
| Daily Pivot Point R3 | 183.97 |
[/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
