The GBPJPY pair experiences a slight increase in value on Monday at a rate of 180.854. However, there is a lack of sustained buying momentum.

…
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 gains some positive traction on Monday, albeit lacks follow-through buying.

The pair currently trades last at 180.854.

The previous day high was 181.75 while the previous day low was 180.66. The daily 38.2% Fib levels comes at 181.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.33, expected to provide resistance.

The GBP/JPY cross kicks off the new week on a positive note, albeit struggles to capitalize on the move and remains below the 181.00 round figure through the Asian session. Spot prices currently trade around the 180.70-180.75 region, nearly unchanged for the day, and the mixed fundamental backdrop warrants some caution before placing aggressive directional bets.

The Bank of England (BoE) last week signalled that the tightening cycle may be nearing an end, which acts as a headwind for the British Pound (GBP) and caps the upside for the GBP/JPY cross. It is worth recalling that the UK central bank called its current monetary policy stance “restrictive” and forced investors to scale back expectations for the peak rate. That said, a more dovish stance adopted by the Bank of Japan (BoJ) continues to undermine the Japanese Yen (JPY) and should limit the downside for spot prices, at least for the time being.

It is worth recalling that the Japanese central bank took steps to make its Yield Curve Control (YCC) policy more flexible at the end of its July monetary policy meeting and fueled speculations about an imminent shift away from the ultra-loose monetary policy. The BoJ Governor Kazuo Ueda, however, moved quickly to dampen speculation about an early end to the negative rate policy and reiterated that the central bank won’t hesitate to ease policy further. Ueda added that more time was needed to sustainably achieve the 2% inflation target.

Furthermore, the BoJ’s Summary of Opinions released this Monday revealed that policymakers generally backed the case for the need to patiently continue with the current monetary easing towards achieving the price stability target. This suggests that the path of least resistance for the GBP/JPY cross is to the upside. Hence, it will be prudent to wait for strong follow-through selling before positioning for an extension of last week’s slide from a near one-month peak in the absence of any relevant market-moving economic releases from the UK on Monday.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 180.72 at the time of writing. Pair opened at 180.72 and is trading with a change of 0.0 % .

The pair is trading below its 20 Daily moving average @ 181.32, above its 50 Daily moving average @ 179.93 , above its 100 Daily moving average @ 173.58 and above its 200 Daily moving average @ 168.24

The previous day high was 181.75 while the previous day low was 180.66. The daily 38.2% Fib levels comes at 181.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.33, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 180.34, 179.95, 179.25
• Pivot resistance is noted at 181.43, 182.14, 182.52

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group