GBP/JPY aims to recapture 161.00 as BOJ’s Kuroda sees no easy policy exit


  • GBP/JPY is approaching 161.00 as BOJ sees a continuation of easy monetary policy.
  • BOJ Governor sees rising labor demand ahead and a shift in wage-setting behavior by the firms.
  • The BOE needs to slow down the interest rate hike pace as households are failing to segment monthly installments.

The GBP/JPY pair has extended its gains to near 160.78 after rebounding from near the psychological resistance of 160.00 in the Asian session. The cross has gained sheer momentum as Bank of Japan (BOJ) Governor Haruhiko Kuroda is standing with the decade-long view of easy monetary policy. The asset aims to re-test a six-day high of around 161.00 as a continuation of loose policy impacts the Japanese yen.

After the decision to widen the allowance band around BOJ’s yield target, BOJ’s Governor has cleared that the decision was not meant to be a step towards an exit from ultra-loose monetary policy. BOJ Governor sees rising labor demand ahead and a shift in wage-setting behavior by the firms.

While Japan PM Fumio Kishida stated that it was premature to say whether the government and the central bank could revise a decade-old joint statement that commits the Bank of Japan (BOJ) to achieve its 2% inflation target at the earliest date possible, as reported by Reuters.

In the early Tokyo session, the Japan Statistics Bureau reported a decline in the Unemployment Rate to 2.5% vs. the expectations and the former release of 2.6%. The catalyst that has impacted the Japanese Yen is the weak Retail Sales data. The annual Retail Trade has dropped to 2.6% against the consensus of 2.8%, while the monthly Retail Trade (Nov) has contracted by 1.1% while the street was expecting a contraction of 0.2%.

On the UK front, think tanks see a slowdown in the interest rate hike by the Bank of England (BOE) as households fail to augment their monthly payments. Analysts at BBH think that the Bank of England tightening expectations may need to adjust lower after a separate consumer survey showed nearly two million UK households had failed to make at least one mortgage, rent, loan, credit card, or any other bill payment over the last month."

GBP/JPY

Overview
Today last price 160.76
Today Daily Change 0.64
Today Daily Change % 0.40
Today daily open 160.12
 
Trends
Daily SMA20 165.11
Daily SMA50 166.65
Daily SMA100 164.56
Daily SMA200 163.77
 
Levels
Previous Daily High 160.12
Previous Daily Low 160.12
Previous Weekly High 167.04
Previous Weekly Low 158.6
Previous Monthly High 170.95
Previous Monthly Low 163.06
Daily Fibonacci 38.2% 160.12
Daily Fibonacci 61.8% 160.12
Daily Pivot Point S1 160.12
Daily Pivot Point S2 160.12
Daily Pivot Point S3 160.12
Daily Pivot Point R1 160.12
Daily Pivot Point R2 160.12
Daily Pivot Point R3 160.12

 

 

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