GBPJPY (British Pound/Japanese Yen) Currencies Analysis 09/05/21
Updated
here is our Previous Analysis and Markey Tracking of the Currency Pair:
Fundamental Analysis:
The GBP/JPY pair tells the trader how many Japanese Yen (the quote currency) are needed to purchase one British Dollar (the base currency).
It is known to be a “carry currency cross”, that is a cross which is a vehicle for carry trading, a strategy that consists in buying a high yielding currency and funding it with a low yielding currency, similar to the adage "buy low, sell high."
ASSETS THAT INFLUENCE GBP/JPY THE MOST
The GBP/JPY pair can also be impacted by:
Currencies: USD and EUR. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD, USD/CAD and EUR/JPY.
Commodities: Oil.
Bonds: Gilt (debt securities issued by the Bank of England), GJGB10 (Japan Generic Govt 10Y Yield) and T-Note (Treasury Note, a marketable U.S. government debt security).
Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (stock market index for the Tokyo Stock Exchange), Dow Jones (DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE GBP/JPY
The organizations and people that affect the most the moves of the GBP/JPY pair are:
Bank of England, known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and oversees monetary policy (including interest rates).
Bank of Japan that issues statements and decides on the interest rates of the country. The BoJ has been applying very low interest rates for many years and even introduced a negative interest rate in January 2016, in an attempt lift consumer prices, which have been sliding for most of the past 20 years.
UK Government and its Prime Minister, Boris Johnson who took office in July 2019, after British citizens voted for the withdrawal of the UK from the European Union (Brexit).
Japanese Government and its Prime Minister Yoshihide Suga, elected in September 2020 to replace the outgoing leader Shinzo Abe, Japan's longest-serving Prime Minister.
UK GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.
Technical analysis:
As you can see in Daily chart, GBPJPY show Hidden Bullish Divergence With MACD. the price have range Bounded between 148.50 and 153.50 for about two months Now. the currency pair is consolidating and Reaccumulating above Fibonacci golden zone, we Believe that GBPJPY might breakout the the resistance area level, in order to get ready and to shoot for TP1 ( 155.13) and ultimately higher targets levels, which are specified by Fibonacci Projection.
as the market have not done any correction for a while which may lead to some temporary Retracement in the other scenario
it is better to monitor the pair for a while and get ready for the break out for any Position Taking.
Fundamental Analysis:
The GBP/JPY pair tells the trader how many Japanese Yen (the quote currency) are needed to purchase one British Dollar (the base currency).
It is known to be a “carry currency cross”, that is a cross which is a vehicle for carry trading, a strategy that consists in buying a high yielding currency and funding it with a low yielding currency, similar to the adage "buy low, sell high."
ASSETS THAT INFLUENCE GBP/JPY THE MOST
The GBP/JPY pair can also be impacted by:
Currencies: USD and EUR. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD, USD/CAD and EUR/JPY.
Commodities: Oil.
Bonds: Gilt (debt securities issued by the Bank of England), GJGB10 (Japan Generic Govt 10Y Yield) and T-Note (Treasury Note, a marketable U.S. government debt security).
Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (stock market index for the Tokyo Stock Exchange), Dow Jones (DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE GBP/JPY
The organizations and people that affect the most the moves of the GBP/JPY pair are:
Bank of England, known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and oversees monetary policy (including interest rates).
Bank of Japan that issues statements and decides on the interest rates of the country. The BoJ has been applying very low interest rates for many years and even introduced a negative interest rate in January 2016, in an attempt lift consumer prices, which have been sliding for most of the past 20 years.
UK Government and its Prime Minister, Boris Johnson who took office in July 2019, after British citizens voted for the withdrawal of the UK from the European Union (Brexit).
Japanese Government and its Prime Minister Yoshihide Suga, elected in September 2020 to replace the outgoing leader Shinzo Abe, Japan's longest-serving Prime Minister.
UK GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.
Technical analysis:
As you can see in Daily chart, GBPJPY show Hidden Bullish Divergence With MACD. the price have range Bounded between 148.50 and 153.50 for about two months Now. the currency pair is consolidating and Reaccumulating above Fibonacci golden zone, we Believe that GBPJPY might breakout the the resistance area level, in order to get ready and to shoot for TP1 ( 155.13) and ultimately higher targets levels, which are specified by Fibonacci Projection.
as the market have not done any correction for a while which may lead to some temporary Retracement in the other scenario
it is better to monitor the pair for a while and get ready for the break out for any Position Taking.
Trade closed: target reached
1 and 2 Targets got Achieved
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