As of February 20, 2025, the British Pound to Japanese Yen (GBP/JPY) currency pair has exhibited notable volatility. Recent technical analyses suggest a potential downward movement, though caution is warranted due to mixed signals.
Technical Analysis:
Gbpjoy broke structure heading to the downside , showing or proving change of direction on a hour timeframe to be precise . A bullish retracement is expected since there's a lot of imbalance that gj left . I used my fib to predict the psychological levels that gj might retrace to .
Fundamental Analysis:
Monetary Policies: The Bank of England (BoE) and the Bank of Japan (BoJ) maintain divergent monetary stances. The BoE's relatively hawkish approach contrasts with the BoJ's continued ultra-loose policy, which traditionally supports GBP strength against JPY.
Economic Indicators: Recent data indicates a contraction in UK retail sales by 6.9% in September 2022, reflecting economic challenges. In contrast, Japan's National Consumer Price Index (CPI) for March showed a modest increase of 0.2% monthly, with a 0.2% annualized decrease, suggesting persistent deflationary pressures.
Market Sentiment:
The GBP/JPY pair is sensitive to global risk sentiment. Increased market volatility or geopolitical tensions often lead investors to seek safe-haven assets like the JPY, potentially exerting downward pressure on the pair. Conversely, improved global economic outlooks may favor GBP appreciation.
Technical Analysis:
Gbpjoy broke structure heading to the downside , showing or proving change of direction on a hour timeframe to be precise . A bullish retracement is expected since there's a lot of imbalance that gj left . I used my fib to predict the psychological levels that gj might retrace to .
Fundamental Analysis:
Monetary Policies: The Bank of England (BoE) and the Bank of Japan (BoJ) maintain divergent monetary stances. The BoE's relatively hawkish approach contrasts with the BoJ's continued ultra-loose policy, which traditionally supports GBP strength against JPY.
Economic Indicators: Recent data indicates a contraction in UK retail sales by 6.9% in September 2022, reflecting economic challenges. In contrast, Japan's National Consumer Price Index (CPI) for March showed a modest increase of 0.2% monthly, with a 0.2% annualized decrease, suggesting persistent deflationary pressures.
Market Sentiment:
The GBP/JPY pair is sensitive to global risk sentiment. Increased market volatility or geopolitical tensions often lead investors to seek safe-haven assets like the JPY, potentially exerting downward pressure on the pair. Conversely, improved global economic outlooks may favor GBP appreciation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.