- The GBP/JPY rises 0.43%, on the way to a weekly gain of more than 0.40% in the middle of a resilient buyer impulse.
- The pair is approaching the maximum of June 17 in 196.83; A closure above 197.00 could open the way to 198.00.
- The RSI remains bullish; The downward risks emerge below the Tenkan-Sen support in 195.29.
The GBP/JPY recovers and rises for the second consecutive day, rises 0.43%, trades in 196.59, near recovering 197.00, ready to finish the week with profits greater than 0.40%. The mood of the market is still negative, but it was not an excuse for buyers to raise the crossed torque to new three days.
GBP/JPY forecast: technical perspective
The GBP/JPY pair continues to consolidate, waiting to break the maximum of June 17, 196.83. A rupture of the latter clears the way to try 197.00. If the PAR prints a daily closure above the latter, buyers could point to 198.00 while launching an annual assault of 198.24.
From the point of view of the impulse, the relative force index (RSI) confirms that the GBP/JPY remains bullish and that buyers are accumulating impulse.
For a bearish movement, sellers must drag the torne below the Tenkan-sen in 195.29. With greater weakness, the GBP/JPY could fall to 194.82, where Senkou Span A is located, followed by the Kijun-sen in 194.35.
Graphic Diary of the GBP/JPY
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
