- The GBP/JPY recovers positive traction on Thursday and seems to be prepared to appreciate even more.
- The formation of an ascending channel points to a well -established short -term bullish trend.
- A convincing rupture is needed below the 196.00 mark to pave the way to deeper losses.
The GBP/JPY crossing attracts some buyers at lower levels near the 198.40-198.35 region during Thursday’s Asian session and slows a modest corrective setback from a maximum of one year reached the previous day. Cash prices are currently negotiated around the 199.00 mark and seem to be prepared to appreciate even more in the midst of a bullish technical configuration.
The recent upward movement observed during the last two months has been along an ascending channel, which points to a well -established short -term upward trend. In addition, the oscillators in the schedules/daily graphics remain in positive territory and are still far from being in the overcompra zone. This, in turn, validates the short -term positive perspective and suggests that the lower resistance path for the GBP/JPY crossing is upwards.
Therefore, a subsequent strength towards the re-test of the peak of the year to date, just before the 200.00 psychological brand, seems to be a different possibility. This level coincides with the upper limit of the mentioned trend channel, which if it is broken decisively will be seen as a new trigger for the gbp/jpy bulls and will prepare the stage for an extension of the three -month -old bullish trend of the torque.
On the contrary, the 198.40-198.35 region, or the daily minimum, now seems to protect the immediate side before the round figure of 198.00. A convincing rupture below the latter could cause some technical sales and expose the following relevant support near the horizontal zone of 197.15-197.10. The GBP/JPY crossing could weaken towards the intermediate support of 196.50 before eventually falling to the 196.00 mark, or the lower end of the trend channel.
GBP/JPY DAILY GRAPH
LIBRA ESTERLINA – FREQUENTLY QUESTIONS
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.
