GBP/JPY: Bulls attack 152.00 on Japan’s return from holidays, BOE eyed

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.

Anil Panchal FXStreet

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.

Read: BoJ Minutes: Must scrutinise financial system developments

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.

Read: Bank of England Preview: Three reasons why Super Thursday could become a sterling suffer-fest

Technical analysis

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

Overview
Today last price	152.01
Today Daily Change	0.15
Today Daily Change %	0.10%
Today daily open	151.86

Trends
Daily SMA20	150.73
Daily SMA50	150.8
Daily SMA100	146.75
Daily SMA200	142.3

Levels
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

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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