Daily Analysis For GBP/JPY 18-05-2023

Daily Analysis For GBP/JPY 18-05-2023

GBP/JPY Analysis
GBP/JPY
Economic Events and Scenario for GBP/JPY
Economic Events : -
GMTEventImpactCurrency
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
00:50(Japan) Imports YoYLowJPY
00:50(Japan) Exports YoYMediumJPY
00:50(Japan) Balance of TradeHighJPY
01:00(Austria) Ascension DayNoneEUR
01:00(Belgium) Ascension DayNoneEUR
01:00(Euro Area) Ascension DayNoneEUR
01:00(Finland) Ascension DayNoneEUR
01:00(France) Ascension DayNoneEUR
01:00(Germany) Ascension DayNoneEUR
01:00(Luxembourg) Ascension DayNoneEUR
01:00(Netherlands) Ascension DayNoneEUR
01:00(Switzerland) Ascension DayNoneCHF
02:30(Australia) Part Time Employment ChgMediumAUD
02:30(Australia) Participation RateLowAUD
02:30(Australia) Full Time Employment ChgMediumAUD
02:30(Australia) Unemployment RateHighAUD
02:30(Australia) Employment ChangeHighAUD
04:00(East Timor) Inflation Rate YoYLowUSD
04:00(East Timor) Inflation Rate MoMLowUSD
04:35(Japan) 52-Week Bill AuctionLowJPY
07:30(Euro Area) ECB Guindos SpeechHighEUR
09:00(Spain) Balance of TradeMediumEUR
09:40(Spain) Obligacion AuctionLowEUR
09:40(Spain) 5-Year Bonos AuctionLowEUR
10:00(Euro Area) ECB President Lagarde SpeechMediumEUR
11:00(Portugal) PPI MoMLowEUR
11:00(Portugal) PPI YoYLowEUR
11:00(Slovakia) Unemployment RateLowEUR
11:30(Portugal) Private Consumption YoYLowEUR
11:30(Portugal) Economic Activity YoYLowEUR
13:30(United States) Philadelphia Fed Manufacturing IndexMediumUSD
13:30(United States) Philly Fed Business ConditionsLowUSD
13:30(United States) Philly Fed CAPEX IndexLowUSD
13:30(United States) Philly Fed EmploymentLowUSD
13:30(United States) Philly Fed New OrdersLowUSD
13:30(United States) Philly Fed Prices PaidLowUSD
13:30(United States) Initial Jobless ClaimsHighUSD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(Canada) New Housing Price Index YoYMediumCAD
13:30(Canada) New Housing Price Index MoMMediumCAD
14:05(United States) Fed Jefferson SpeechMediumUSD
14:30(United States) Fed Barr TestimonyMediumUSD
15:00(United States) Existing Home Sales MoMHighUSD
15:00(United States) Existing Home SalesHighUSD
15:00(United States) CB Leading Index MoMLowUSD
15:00(United States) Fed Logan SpeechMediumUSD
15:30(United States) EIA Natural Gas Stocks ChangeLowUSD
16:30(United States) 8-Week Bill AuctionLowUSD
16:30(United States) 4-Week Bill AuctionLowUSD
18:00(United States) 10-Year TIPS AuctionLowUSD
20:00(El Salvador) Balance of TradeLowUSD
23:45(New Zealand) Balance of TradeMediumNZD
23:45(New Zealand) ExportsLowNZD
23:45(New Zealand) ImportsLowNZD
Today's Scenario: - As the Asian session commences, the GBP/JPY pair has experienced a significant rally. This is attributed to the decisive breakout above a falling wedge pattern, which is typically considered a bullish chart pattern. The GBP/JPY is nearing the year-to-date (YTD) high of 172.33. Currently, at the time of writing, the GBP/JPY is trading at 171.86, registering a minimal decline of 0.01%.
Buy Scenario: - The GBP/JPY uptrend remains intact when observed from a daily chart perspective, although it will face significant resistance levels in the near term. A break above 172.33 could potentially lead to further gains, supported by bullish momentum oscillators.
It is worth noting that while the overall trend is bullish, there is a negative divergence emerging as the Relative Strength Index (RSI) indicator forms a lower peak compared to the previous one, while the price reaches higher highs. This suggests the possibility of a pullback in the future.
In the event that the GBP/JPY breaks above 173.00, the next resistance level to challenge would be around 175.00. If this level is surpassed, the pair could rally towards the 2016 year high of 177.37. Breaking above that level would bring the next supply zone into focus, with the 180.00 figure being a significant level to watch. Breaching this level could potentially lead to a test of the 2015 high at 195.88. Till we do not advise to buy GBP/JPY.
Sell Scenario: - On the downside, if the GBP/JPY fails to sustain above 172.00, it could retreat towards the May 16 high of 170.83. Further downside movement would expose the May 17 daily low of 170.11, with a potential break below leading to a test of the psychological level of 170.00. Till we do not advise to sell GBP/JPY.
Support and Resistance Level: -
SupportResistance
S1 170.69-R1 172.58
S2 169.45-R2 173.24
S3 168.79-R3 174.48

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