The GBPJPY currency pair, trading at 177.395, continues to face selling pressure and drops to around 177.20 following the rate decision made by the Bank of Japan.
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- GBP/JPY cross remains under selling pressure and slides to the 177.20 area after the BoJ rate decision.
The pair currently trades last at 177.395.
The previous day high was 181.93 while the previous day low was 177.41. The daily 38.2% Fib levels comes at 179.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 180.2, expected to provide resistance.
The GBP/JPY cross remains under selling pressure on Friday. The cross accelerates its bearish correction after retreating from the 181.50–177.00 region. GBP/JPY currently trades around 177.28, losing 0.64% for the day. The Japanese yen appreciated against its rivals following the central bank’s interest rate decision.
The Bank of Japan maintained its ultra-low interest rates on Friday and decided to maintain its short-term interest rates at -0.1% while keeping its 10-year JGB yield target around 0%. Also, the central bank is allowed to make its yield curve control policy more flexible by moving 0.5% around the 0% target.
Earlier on Friday, Nikkei News reported that the BoJ will discuss tweaking its yield curve control policy to allow long-term interest rates to rise beyond the 0.5% ceiling. The Japanese Yen strengthened sharply against the Pound Sterling, and the 10-year Japanese government bond (JGB) yield rose to 0.519%.
BoJ Governor Kazuo Ueda reiterated that he would likely maintain ultra-loose policy to sustainably achieve the 2% inflation target. BoJ officials added that central banks prefer to examine more data before adjusting monetary policy.
Japanese Finance Minister Shunichi Suzuki also stated that the central bank is closely watching the Federal Reserve (Fed) and other central banks’ policy decisions.
The latest report from the Statistics Bureau of Japan showed on Friday that July’s headline Tokyo Consumer Price Index (CPI) rose to 3.2% YoY from 3.1% prior, against the market expectation of 2.8%. Meanwhile, the core Tokyo CPI, excluding Fresh Food and energy, improved to 4.0% from 3.8% previously. Furthermore, the Tokyo CPI ex-fresh food fell from 3.2% to 3.0% for the same month, against the market consensus of 2.9%.
On the other side, the Pound Sterling (GBP) weakens as worries of a recession in the UK economy might convince the BoE to aggressively tighten policy. The Bank’s most aggressive rate hikes in three decades fuel concern about the impact on the UK’s economy, which exerts pressure on the Pound Sterling.
In the absence of top-tier economic data released from the United Kingdom, market participants will digest the data and statements from the BoJ. The JPY’s valuation is likely to continue to influence the cross’s movement in the next few sessions.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 177.02 at the time of writing. Pair opened at 178.44 and is trading with a change of -0.8 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 177.02 |
| 1 | Today Daily Change | -1.42 |
| 2 | Today Daily Change % | -0.80 |
| 3 | Today daily open | 178.44 |
The pair is trading below its 20 Daily moving average @ 181.77, below its 50 Daily moving average @ 178.79 , above its 100 Daily moving average @ 172.38 and above its 200 Daily moving average @ 167.86
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 181.77 |
| 1 | Daily SMA50 | 178.79 |
| 2 | Daily SMA100 | 172.38 |
| 3 | Daily SMA200 | 167.86 |
The previous day high was 181.93 while the previous day low was 177.41. The daily 38.2% Fib levels comes at 179.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 180.2, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 176.59, 174.74, 172.07
- Pivot resistance is noted at 181.1, 183.77, 185.62
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 181.93 |
| Previous Daily Low | 177.41 |
| Previous Weekly High | 182.53 |
| Previous Weekly Low | 179.74 |
| Previous Monthly High | 183.88 |
| Previous Monthly Low | 172.67 |
| Daily Fibonacci 38.2% | 179.14 |
| Daily Fibonacci 61.8% | 180.20 |
| Daily Pivot Point S1 | 176.59 |
| Daily Pivot Point S2 | 174.74 |
| Daily Pivot Point S3 | 172.07 |
| Daily Pivot Point R1 | 181.10 |
| Daily Pivot Point R2 | 183.77 |
| Daily Pivot Point R3 | 185.62 |
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