GBP/JPY has been trading in a wide range since October 2024 after the pair breached the 208.00 level and retracted sharply on last July and August Carry Trades’ unwinding.
Market Players recently got some key data for their trading in both the GBP and the JPY.
The Bank of England took their decision to hold their rates but with a more dovish stance than markets expected with 3 out of 9 who voted for a cut – The BoE is starting to show a few concerns about the UK GDP appearing progressively weaker, but with a still too-high inflation.
Japan is also seeing strong inflation prints, with the latest report released yesterday evening showing 3.7% inflation year-over-year instead of 3.6% expected.
Bank of Japan’s Governor is still mentioning some recovery in the economy despite weakness, as the BoJ has been waiting to generate persistent inflation for more than 20 years now.
For JPY Traders, it is always interesting to stay in touch with the Japanese 2-Year Yields (JP02Y on TradingView) to spot if there is any imminent change in hike expectations.
The 2-Year Yield usually tracks the expected policy rate tightly.
You can access our latest in-depth review of GBP/JPY and how to trade the pair in this current range with the article below:
Read More: How to trade a range with GBP/JPY
GBP/JPY Technical Analysis from Daily and 4H Charts
GBP/JPY Daily Chart
Source: TradingView
The pair is currently trading in the intermediate Resistance Zone as the Yen has been weakening on a lack of hawkish tone from Bank of Japan speakers despite a more dovish Bank of England.
Daily key Moving Averages are still flat and hanging around the Main 193.00 Pivot, still confirming the Range-bound trends in the pair.
The Daily RSI is printing above the 50-neutral level, as the pair trades more on the bid side since the latter part of May.
Key Zones of interest to keep on your charts:
Daily Resistance Zones
- Intermediate Resistance 195.00 to 196.85 (currently trading)
- Main Resistance 199.00 to 200.00
Daily Support Zones
- Main Pivot 193.00 (Currently acting as Support)
- Intermediate Support 188.00 - 190.00
- Main Support 184.00 - 185.00
GBP/JPY 4H Chart
Source: TradingView
GBP/JPY has been in a volatile uptrend within the range but has stalled 5 times in the Intermediate Resistance Zone where we are currently trading.
The 4H RSI is currently showing signs of reversals but this still has to be confirmed by price action.
Bears are looking to breach the 4H 50-period Moving Average at 195.53 before looking to retest the FOMC 194.00 Lows to confirm the top-range rejection.
Bulls would look to maintain the ongoing upwards trendline to go retest January 2025 highs around the 198 level, right before the Main Daily Resistance Zone.
Safe Trades!