Published on Apr 6, 2023

Daily Analysis For GBP/JPY 06-04-2023

GBP/JPY Analysis

Economic Events and Scenario for GBP/JPY

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) Foreign Bond Investment	Low	JPY
00:50	(Japan) Stock Investment by Foreigners	Low	JPY
01:00	(El Salvador) Maundy Thursday	None	USD
01:00	(Portugal) Maundy Thursday	None	EUR
02:30	(Australia) Exports MoM	Low	AUD
02:30	(Australia) Imports MoM	Low	AUD
02:30	(Australia) Balance of Trade	High	AUD
02:30	(Australia) RBA Financial Stability Review	Medium	AUD
02:45	(China) Caixin Composite PMI	Low	CNY
02:45	(China) Caixin Services PMI	High	CNY
04:35	(Japan) 6-Month Bill Auction	Low	JPY
04:35	(Japan) 30-Year JGB Auction	Low	JPY
06:00	(Estonia) Industrial Production MoM	Low	EUR
06:00	(Estonia) Industrial Production YoY	Low	EUR
06:00	(Finland) Industrial Production YoY	Low	EUR
06:45	(Switzerland) Unemployment Rate	High	CHF
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
07:00	(United Kingdom) Halifax House Price Index MoM	Medium	GBP
07:00	(United Kingdom) Halifax House Price Index YoY	Medium	GBP
08:00	(Austria) Balance of Trade	Low	EUR
08:00	(Austria) Wholesale Prices MoM	Low	EUR
08:00	(Austria) Wholesale Prices YoY	Low	EUR
08:00	(Slovakia) Balance of Trade	Low	EUR
08:00	(Switzerland) Foreign Exchange Reserves	Low	CHF
08:30	(Euro Area) S&P Global Construction PMI	Low	EUR
08:30	(France) S&P Global Construction PMI	Low	EUR
08:30	(Germany) S&P Global Construction PMI	Medium	EUR
08:30	(Italy) S&P Global Construction PMI	Low	EUR
09:00	(Germany) New Car Registrations YoY	Low	EUR
09:30	(United Kingdom) S&P Global/CIPS Construction PMI	Medium	GBP
10:00	(France) New Car Registrations YoY	Low	EUR
10:00	(Cyprus) Construction Output YoY	Low	EUR
10:00	(Cyprus) Inflation Rate MoM	Low	EUR
10:00	(Cyprus) Inflation Rate YoY	Low	EUR
10:00	(France) 10-Year OAT Auction	Low	EUR
11:00	(Ireland) Industrial Production YoY	Low	EUR
12:30	(United States) Challenger Job Cuts	Low	USD
13:30	(Canada) Average Hourly Wages YoY	Low	CAD
13:30	(Canada) Part Time Employment Chg	Medium	CAD
13:30	(Canada) Full Time Employment Chg	Medium	CAD
13:30	(Canada) Participation Rate	Medium	CAD
13:30	(Canada) Employment Change	High	CAD
13:30	(Canada) Unemployment Rate	High	CAD
13:30	(United States) Initial Jobless Claims	High	USD
13:30	(United States) Jobless Claims 4-week Average	High	USD
13:30	(United States) Continuing Jobless Claims	High	USD
15:00	(Canada) Ivey PMI s.a	High	CAD
15:00	(Ecuador) Inflation Rate YoY	Low	USD
15:00	(United States) Total Vehicle Sales	Low	USD
15:00	(United States) Fed Bullard Speech	Medium	USD
15:30	(United States) EIA Natural Gas Stocks Change	Low	USD
16:30	(United States) 8-Week Bill Auction	Low	USD
16:30	(United States) 4-Week Bill Auction	Low	USD
18:00	(United States) Baker Hughes Oil Rig Count	Low	USD
18:00	(United States) Baker Hughes Total Rig Count	Low	USD

Today's Scenario: - The British pound experienced some weakness during Wednesday's trading session as it encountered major resistance barriers. Additionally, there were concerns about the yen as the market sold off significantly late on Tuesday, forming a large shooting star candlestick pattern. The pound had been overextended against multiple currencies, which could explain the pullback. However, a major sell-off is unlikely, and instead, the market may pull back into previous consolidation to gauge overall market sentiment.

Buy Scenario: - The current market trend is bullish, and the M-formation could provide an opportunity for buyers to enter at the front of the trendline. This pattern is a reversal formation that could potentially cause the price to drop to the neckline. However, this does not guarantee that there will not be further downward movement in the near future. Till we do not advise to buy GBP/JPY.

Sell Scenario: - The price is currently in a bearish trend and it is important to fill the 4-hour wick in order to address a price imbalance on the 15-minute chart. This may lead to a retest of the 163 level. In order for bulls to gain momentum, they would need to break through the 163.50 horizontal resistance level on the backside of the bear trend, we do not advise to sell GBP/JPY.

Support and Resistance Level: -