GBP/JPY Price Analysis: Plunges amid intervention fears, hoovers around 205.00
-
GBP/JPY
experiences
volatility,
peaking
at
208.11,
then
dips
to
203.82,
settling
at
204.99. -
Downward
momentum
observed;
support
at
203.25
(Kijun-Sen)
and
200.16
(50-DMA). -
Resistance
positioned
at
205.00
and
205.64
(Tenkan-Sen);
breach
could
signal
recovery.
The
Pound-Yen
pair
witnessed
a
volatile
session
amid
speculation
of
Japanese
authorities’
intervention
after
the
latest
US
inflation
report
announcement.
The
GBP/JPY
traveled
425
pips
in
the
session,
hitting
a
high
of
208.11
before
plummeting
toward
203.82.
Since
then,
the
cross
stabilized
at
around
the
204.99
mark,
sustaining
more
than
1.20%
losses.
GBP/JPY
Price
Analysis:
Technical
outlook
The
GBP/JPY
daily
chart
shows
the
pair
as
upward
biased,
even
though
it
cleared
the
Tenkan-Sen
level
at
205.64,
which
accelerated
the
pair’s
fall
underneath
the
Senkou
Span
A
at
204.45.
Nevertheless,
it
has
recovered
some
ground,
though
in
the
near
term,
momentum
supports
sellers.
The
Relative
Strength
Index
(RSI)
remains
bullish
but
shows
a
steeper
slope
to
the
downside
at
the
time
of
writing,
hinting
that
bears
loom.
In
a
bearish
continuation,
sellers
must
push
the
prices
below
the
abovementioned
Senkou
Span
A,
which
could
pave
the
way
to
test
the
Kijun-Sen
at
203.25.
A
further
downside
is
seen
at
the
50-day
moving
average
(DMA)
at
200.16,
ahead
of
the
Senkou
Span
B
at
199.3.
Conversely,
if
GBP/JPY
recovers
some
ground
and
clears
205.00,
further
gains
lie
ahead.
The
cross
could
aim
towards
the
Tenkan-Sen
at
205.64
before
challenging
206.00.
GBP/JPY
Price
Action
–
Daily
Chart
Pound
Sterling
FAQs
The
Pound
Sterling
(GBP)
is
the
oldest
currency
in
the
world
(886
AD)
and
the
official
currency
of
the
United
Kingdom.
It
is
the
fourth
most
traded
unit
for
foreign
exchange
(FX)
in
the
world,
accounting
for
12%
of
all
transactions,
averaging
$630
billion
a
day,
according
to
2022
data.
Its
key
trading
pairs
are
GBP/USD,
aka
‘Cable’,
which
accounts
for
11%
of
FX,
GBP/JPY,
or
the
‘Dragon’
as
it
is
known
by
traders
(3%),
and
EUR/GBP
(2%).
The
Pound
Sterling
is
issued
by
the
Bank
of
England
(BoE).
The
single
most
important
factor
influencing
the
value
of
the
Pound
Sterling
is
monetary
policy
decided
by
the
Bank
of
England.
The
BoE
bases
its
decisions
on
whether
it
has
achieved
its
primary
goal
of
“price
stability”
–
a
steady
inflation
rate
of
around
2%.
Its
primary
tool
for
achieving
this
is
the
adjustment
of
interest
rates.
When
inflation
is
too
high,
the
BoE
will
try
to
rein
it
in
by
raising
interest
rates,
making
it
more
expensive
for
people
and
businesses
to
access
credit.
This
is
generally
positive
for
GBP,
as
higher
interest
rates
make
the
UK
a
more
attractive
place
for
global
investors
to
park
their
money.
When
inflation
falls
too
low
it
is
a
sign
economic
growth
is
slowing.
In
this
scenario,
the
BoE
will
consider
lowering
interest
rates
to
cheapen
credit
so
businesses
will
borrow
more
to
invest
in
growth-generating
projects.
Data
releases
gauge
the
health
of
the
economy
and
can
impact
the
value
of
the
Pound
Sterling.
Indicators
such
as
GDP,
Manufacturing
and
Services
PMIs,
and
employment
can
all
influence
the
direction
of
the
GBP.
A
strong
economy
is
good
for
Sterling.
Not
only
does
it
attract
more
foreign
investment
but
it
may
encourage
the
BoE
to
put
up
interest
rates,
which
will
directly
strengthen
GBP.
Otherwise,
if
economic
data
is
weak,
the
Pound
Sterling
is
likely
to
fall.
Another
significant
data
release
for
the
Pound
Sterling
is
the
Trade
Balance.
This
indicator
measures
the
difference
between
what
a
country
earns
from
its
exports
and
what
it
spends
on
imports
over
a
given
period.
If
a
country
produces
highly
sought-after
exports,
its
currency
will
benefit
purely
from
the
extra
demand
created
from
foreign
buyers
seeking
to
purchase
these
goods.
Therefore,
a
positive
net
Trade
Balance
strengthens
a
currency
and
vice
versa
for
a
negative
balance.
Leave a Reply