Published on May 1, 2023

Daily Analysis For GBP/JPY 01-05-2023

GBP/JPY Analysis

Economic Events and Scenario for GBP/JPY

Economic Events : -

GMT	Event	Impact	Currency
00:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
01:00	(Austria) Labor Day	None	EUR
01:00	(Belgium) Labor Day	None	EUR
01:00	(China) May Day	None	CNY
01:00	(Cyprus) Labor Day	None	EUR
01:00	(Ecuador) Labor Day	None	USD
01:00	(El Salvador) Labor Day	None	USD
01:00	(Estonia) Spring Day	None	EUR
01:00	(Euro Area) Labor Day	None	EUR
01:00	(Finland) May Day	None	EUR
01:00	(France) Labor Day	None	EUR
01:00	(Germany) Labor Day	None	EUR
01:00	(Greece) Labor Day	None	EUR
01:00	(Ireland) May Day	None	EUR
01:00	(Italy) Labor Day	None	EUR
01:00	(Latvia) Labor Day	None	EUR
01:00	(Lithuania) Labor Day	None	EUR
01:00	(Luxembourg) Labor Day	None	EUR
01:00	(Malta) Labor Day	None	EUR
01:00	(Montenegro) Labor day	None	EUR
01:00	(Portugal) Labor Day	None	EUR
01:00	(Spain) Labor Day	None	EUR
01:00	(United Kingdom) May Day Bank Holiday	None	GBP
01:30	(Japan) Jibun Bank Manufacturing PMI	Medium	JPY
02:00	(Australia) TD-MI Inflation Gauge MoM	Low	AUD
02:30	(Australia) ANZ-Indeed Job Ads MoM	Low	AUD
06:00	(Japan) Consumer Confidence	High	JPY
07:30	(Australia) Commodity Prices YoY	Low	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
14:30	(Canada) S&P Global Manufacturing PMI	High	CAD
14:45	(United States) S&P Global Manufacturing PMI	High	USD
15:00	(United States) ISM Manufacturing Prices	Low	USD
15:00	(United States) ISM Manufacturing New Orders	Low	USD
15:00	(United States) ISM Manufacturing Employment	Medium	USD
15:00	(United States) Construction Spending MoM	Low	USD
15:00	(United States) ISM Manufacturing PMI	High	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD

Today's Scenario: - The GBP/JPY pair is approaching a six-month high of 172.17 after breaking above the consolidation level around 171.00 during the Asian trading session. The Japanese Yen has been heavily impacted by the stance of the new Bank of Japan (BoJ) Governor Kazuo Ueda, who supports continuing ultra-dovish monetary policy to maintain inflationary pressure above 2%.

The BoJ announced that there would be no change in the Yield Curve Control (YCC) policy, with unanimous agreement that consideration of an exit from the ultra-loose policy is not yet necessary.

Regarding the pound Sterling, market participants are eagerly anticipating the upcoming interest rate decision by the Bank of England (BoE), which is scheduled for next week.

Buy Scenario: - The GBP/JPY pair is currently approaching a six-month resistance level at 172.17, which was established on October 31, 2022. If the pair continues to rise, it may find support in a range between 165.42 and 167.95.

The 10 and 20-period Exponential Moving Averages (EMAs), which are currently at 168.27 and 166.87 respectively, are upward-sloping, further bolstering the bullish case.

Additionally, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, indicating that the current bullish momentum is already in play.

If the pair manages to break above the six-month resistance level at 172.17, it could continue to rise towards a fresh seven-year high of around 172.50, followed by the high on January 8, 2016, at 173.38. Till we do not advise to buy GBP/JPY.

Sell Scenario: - On the other hand, if the pair breaks down below the April 25 low at 165.42, it could decline towards the high on March 1, 2023, at 164.40, and the high on March 7, 2023, at 163.86. Till we do not advise to sell GBP/JPY.

Support and Resistance Level: -