Daily Analysis For GBP/JPY 20-04-2023

Daily Analysis For GBP/JPY 20-04-2023

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
02:15(China) Loan Prime Rate 1YMediumCNY
02:15(China) Loan Prime Rate 5YMediumCNY
04:35(Japan) 20-Year JGB AuctionLowJPY
05:30(Japan) Tertiary Industry Index MoMLowJPY
05:30(Netherlands) Unemployment RateMediumEUR
05:30(Netherlands) Consumer ConfidenceMediumEUR
06:00(Estonia) PPI YoYLowEUR
06:00(Estonia) PPI MoMLowEUR
07:00(Germany) PPI YoYLowEUR
07:00(Germany) PPI MoMMediumEUR
07:45(France) Business Climate IndicatorLowEUR
07:45(France) Business ConfidenceMediumEUR
09:00(Greece) Current AccountLowEUR
09:00(Spain) Balance of TradeMediumEUR
09:40(Spain) 7-Year Obligacion AuctionLowEUR
09:40(Spain) 10-Year Obligacion AuctionLowEUR
10:00(China) FDI (YTD) YoYMediumCNY
10:00(Euro Area) Balance of TradeMediumEUR
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(France) 5-Year BTAN AuctionLowEUR
10:00(France) 3-Year BTAN AuctionLowEUR
11:00(France) 10-Year Index-Linked OAT AuctionLowEUR
11:00(Luxembourg) Unemployment RateLowEUR
11:00(Portugal) PPI YoYLowEUR
11:00(Portugal) PPI MoMLowEUR
12:30(Euro Area) ECB Monetary Policy Meeting AccountsMediumEUR
13:30(United States) Philadelphia Fed Manufacturing IndexMediumUSD
13:30(United States) Philly Fed Business ConditionsLowUSD
13:30(United States) Philly Fed EmploymentLowUSD
13:30(United States) Philly Fed CAPEX IndexLowUSD
13:30(United States) Philly Fed Prices PaidLowUSD
13:30(United States) Philly Fed New OrdersLowUSD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(United States) Initial Jobless ClaimsHighUSD
15:00(Euro Area) Consumer ConfidenceMediumEUR
15:00(United States) Existing Home Sales MoMHighUSD
15:00(United States) Existing Home SalesHighUSD
15:00(United States) CB Leading Index MoMLowUSD
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
17:00(United States) Fed Waller SpeechMediumUSD
18:00(United States) 5-Year TIPS AuctionLowUSD
20:00(United States) Fed Bowman SpeechMediumUSD
21:15(Euro Area) ECB Schnabel SpeechLowEUR
Today's Scenario: - The GBP/JPY pair has rebounded from a low of 167.36 in the Asian session. The pair saw a significant rise on Wednesday after the release of the UK Consumer Price Index (CPI), which confirmed that the Bank of England (BoE) would continue with its rate-hiking policy. The headline CPI has decreased slightly to 10.1% from the previous release of 10.4%, driven by a drop in energy prices for heating and electricity. However, investors are not satisfied with the decline in inflationary pressures as the figure failed to fall out of the double-digit territory. In addition, food price inflation has reached a new 45-year high at 19.1%.
Buy Scenario: - There is psychological support at the ¥165 level, followed by the 50-day EMA near ¥163.50. A break below this level could result in a move down to the ¥160 support level. However, the general trend remains a "buy on the dip" situation, and there are potential opportunities for upside movement. At present, there is no interest in buying the Japanese yen against the British pound, so the focus is on finding opportunities for gains. Till we do not advise to buy GBP/JPY.
Sell Scenario: - It's important to keep in mind that the Bank of Japan is still implementing yield curve control, so it's crucial to monitor developments in the bond markets. Yield curve control means that the Bank of Japan will have to print more Japanese yen when the 10-year yield approaches 50 basis points, which caused issues with the yen last year. If this happens again, it could be bearish for the yen and bullish for the British pound, which has been performing well this year. Till we do not advise to sell GBP/JPY.
Support and Resistance Level: -
SupportResistance
S1 166.72-R1 168.21
S2 165.86-R2 168.83
S3 165.24-R3 169.69

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