- GBP/JPY refreshes intraday top while rising for third day in the week.
- BOJ Minutes couldn’t offer clear directions but Nikkei jumps 1.0% on week-start trading.
- Bulls stay hopeful ahead of BOE Super Thursday amid UK’s recently strong fundamentals.
- Japan looks set to extend the covid-led state of emergency in the key prefectures on Friday.
GBP/JPY jumps over 15 pips to refresh the day’s top with 152.04 level as Tokyo resumes trading for the first time since last Friday. Although Japanese traders begin the week on a positive footing, mixed clues from the Bank of Japan (BOJ) monetary policy meeting minutes fail to entertain markets.
As per the BOJ Minutes of the Monetary Policy Meeting on March 18 and 19, 2021, “Members agreed that Yield Curve Control (YCC) was exerting intended policy effect.” The minutes portray indecision among the policymakers while backing the easy money moves amid the pandemic resurgence.
It should, however, be noted that the Nikkei 225’s 1.0% jump, up 1.21% near 29,157.70 by the press time, might have followed the market optimisms on the back of easing reflation fears. Also, hopes of further stimulus from the US and Japan could back the bulls from Asian major as well.
Elsewhere, the Fed policymakers kept rejecting the need for policy normalization and considered the recent jump in inflation pressure as temporary. While justifying their analysis were the soft US data and downbeat yields.
It’s worth mentioning that the Japanese government is mostly certain to extend the COVID-19 state of emergency currently in effect in Tokyo and several western Japan prefectures beyond its May 11 end date, with a final decision to be made on Friday, per Kyodo News. Also challenging the mood could be the global ire over China during the Group of Seven (G7) ministerial meeting.
Amid these plays, US 10-year Treasury yields seesaw near 1.58% while S&P 500 Futures also struggle for fresh clues after Wall Street benchmarks closed mixed despite Dow Jones’ run-up to a fresh record top.
Moving on, GBP/JPY will have an active day ahead as the Bank of England (BOE) will publish its Quarterly Inflation Report while likely to stand pat on the current monetary policy. However, the recent strength in British fundamentals and unlock optimism can back the bulls.
Unless breaking a two-week-old ascending trend line near 151.50, GBP/JPY buyers may keep their eyes on post-152.00 area.
Additional important levels
|Today last price||152.01|
|Today Daily Change||0.15|
|Today Daily Change %||0.10%|
|Today daily open||151.86|
|Previous Daily High||152.24|
|Previous Daily Low||151.76|
|Previous Weekly High||152.41|
|Previous Weekly Low||149.54|
|Previous Monthly High||153.42|
|Previous Monthly Low||149.06|
|Daily Fibonacci 38.2%||151.94|
|Daily Fibonacci 61.8%||152.05|
|Daily Pivot Point S1||151.66|
|Daily Pivot Point S2||151.47|
|Daily Pivot Point S3||151.18|
|Daily Pivot Point R1||152.15|
|Daily Pivot Point R2||152.43|
|Daily Pivot Point R3||152.63|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.