Published on May 9, 2023

Daily Analysis For GBP/JPY 09-05-2023

GBP/JPY Analysis

Economic Events and Scenario for GBP/JPY

Economic Events : -

GMT	Event	Impact	Currency
00:01	(United Kingdom) BRC Retail Sales Monitor YoY	High	GBP
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
01:00	(Euro Area) Anniversary of Robert Schumans Declaration	None	EUR
01:00	(Luxembourg) Europe Day	None	EUR
02:30	(Australia) Retail Sales MoM	High	AUD
04:00	(China) Exports YoY	Medium	CNY
04:00	(China) Imports YoY	Medium	CNY
04:00	(China) Balance of Trade	High	CNY
04:35	(Japan) 10-Year JGB Auction	Low	JPY
04:35	(Japan) 6-Month Bill Auction	Low	JPY
07:00	(Lithuania) CPI	Low	EUR
07:00	(Lithuania) Inflation Rate MoM	Low	EUR
07:00	(Lithuania) Inflation Rate YoY	Low	EUR
07:00	(United Kingdom) Halifax House Price Index YoY	Medium	GBP
07:00	(United Kingdom) Halifax House Price Index MoM	Medium	GBP
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Imports	Low	EUR
08:00	(Slovakia) Balance of Trade	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(Euro Area) ECB Lane Speech	Low	EUR
09:40	(Spain) 6-Month Letras Auction	Low	EUR
09:40	(Spain) 12-Month Letras Auction	Low	EUR
10:30	(Germany) 5-Year Bobl Auction	Low	EUR
10:30	(Australia) 2023-24 Federal Budget	Medium	AUD
11:00	(United Kingdom) BBA Mortgage Rate	Low	GBP
11:00	(Ireland) Industrial Production YoY	Low	EUR
11:00	(United States) NFIB Business Optimism Index	Low	USD
13:30	(United States) Fed Jefferson Speech	Medium	USD
13:55	(United States) Redbook YoY	Low	USD
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:00	(United States) IBD/TIPP Economic Optimism	Medium	USD
15:30	(United States) NY Fed Treasury Purchases 0 to 1 yrs	Low	USD
17:05	(United States) Fed Williams Speech	Medium	USD
18:00	(United States) 3-Year Note Auction	Low	USD
18:00	(Euro Area) ECB Schnabel Speech	Low	EUR
21:30	(United States) API Crude Oil Stock Change	Medium	USD

Today's Scenario: - Despite a fall from its daily high of 171.07, the GBP/JPY continues to hold onto earlier gains, despite a shift in investor sentiment towards safe-haven currencies like the Japanese Yen (JPY). As a result, the cross-currency pair remains in positive territory, currently trading at 170.50, up 0.11% from its opening price.

Buy Scenario: - The GBP/JPY formed a bullish-engulfing candlestick pattern on Friday, indicating a potential continuation of the uptrend. However, on Monday, the price action formed a doji, suggesting indecision among traders. Despite this, the Relative Strength Index (RSI) indicates that buyers remain in control, and the 3-day Rate of Change (RoC) has climbed from the neutral territory, indicating that buyers are entering the market.

If the GBP/JPY continues to trend upwards, the first resistance level is likely at 171.00. A breach of this level could lead to a further increase towards the year-to-date high of 172.33, followed by the 173.00 mark. Till we do not advise to buy GBP/JPY.

Sell Scenario: - On the other hand, if sellers gain momentum, the first support level is at 170.00. If this level is breached, the GBP/JPY could test the last week’s low of 168.06, followed by the intersection of the April 25 daily low and the 50-day Exponential Moving Average (EMA) at around 165.43/60. Till we do not advise to sell GBP/JPY.

Support and Resistance Level: -