GBP/JPY looks to test 150.00 post-BOJ disappointment, Kuroda comments


  • GBP/JPY prints fresh daily gains on Wednesday in the European trading hours.
  • Evergrande contagion risk ebbed, delay in UK-US post-Brexit deal influenced sterling prospects.
  • BOJ no show, Kuroda cautious view keeps the Japanese yen on the lower side.

GBP/JPY edges higher on Wednesday  in the early European trading hours. The pair continued to trade in a consolidated range of 148.50 and 150.00 for the last two sessions.

At the time of writing, the GBP/JPY pair is trading at 149.56, up 0.26% for the day.

Investors digested Evengrande default fears and braced up for the FOMC meeting due later in the day.

The British pound gained on improved risk appetite after China's Evergrande’s main unit decided to pay shareholders bond coupon payment on September 23. 

Meanwhile, UK Prime Minister Boris Johnson said a free trade agreement between the US and the UK is very unlikely to materialize before the next general election in 2024. This, in turn, weighed negatively on the British pound.

It is worth noting that the S&P 500 Futures is trading at 4,367 with 0.56% gains.

On the other hand, the Japanese yen remained on the backfoot after the Bank of Japan (BOJ) left its short-term interest rate unchanged at -0.1% and kept the 10-year government bond yields at around 0%.

In addition to that, the BOJ Governor Haruhiko Kuroda while addressing a press conference said that the economy remained in a severe situation due to the COVID-19 pandemic and the doors are open for further accommodative monetary policy stance if such a situation arises. 

As for now, investors are waiting for the US FOMC Economic Projections and Fed Interest Rate Decision to take fresh trading impetus.

GBP/JPY additional levels

GBP/JPY

Overview
Today last price 149.59
Today Daily Change 0.36
Today Daily Change % 0.24
Today daily open 149.23
 
Trends
Daily SMA20 151.38
Daily SMA50 151.57
Daily SMA100 152.78
Daily SMA200 149.71
 
Levels
Previous Daily High 150.14
Previous Daily Low 148.96
Previous Weekly High 152.85
Previous Weekly Low 150.84
Previous Monthly High 153.32
Previous Monthly Low 149.19
Daily Fibonacci 38.2% 149.41
Daily Fibonacci 61.8% 149.69
Daily Pivot Point S1 148.74
Daily Pivot Point S2 148.26
Daily Pivot Point S3 147.56
Daily Pivot Point R1 149.93
Daily Pivot Point R2 150.62
Daily Pivot Point R3 151.11

 

 

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