GBP/JPY finds less-confident pullback below 150.00, BOJ Kuroda’s speech eyed


  • GBP/JPY is expected to conclude its less-confident pullback ahead of BOJ Kuroda’s speech.
  • Japan's central bank chief may discuss the further path of intervention in the currency market.
  • UK’s GDP is seen steady at -0.1% and 2.9% on a quarterly and yearly basis.

The GBP/JPY pair displays a short-lived pullback after dropping to 148.00 in the Tokyo session. The less confident pullback has pushed the cross to near 152.00, however, the downside remains favored as an intervention of the Bank of Japan (BOJ) into the currency market has strengthened the Japanese yen against the pound.

The decision to intervene in the currency markets came after the BOJ continued its dovish stance on interest rates. BOJ Governor Haruhiko Kuroda believes that the Japanese economy needs a cushion to offset the impact of the Covid-19 pandemic. The central bank intervened in the FX moves as it believes that the current yen valuation provided by the market participants doesn’t justify the fundamentals.

Meanwhile, Japanese Finance Minister Shunichi Suzuki cited that “Recent one-sided and rapid yen moves are not desirable,” as per Reuters.

Japanese Chief Cabinet Secretary Hirokazu Matsuno is concerned about Russia’s nuclear warning and has decided to ban exports of chemical weapon-related goods to Russia as an additional sanction on Moscow’s action in Ukraine,”

Going forward, the speech from BOJ Governor Haruhiko Kuroda will be of utmost importance. Investors are expecting more insights into the path of intervention in the currency markets by the central bank to safeguard the depreciating yen.

On the UK front, a deepening energy crisis, soaring inflationary pressures, and rising interest rates without the support of economic fundamentals are weakening the pound bulls. The optimism generated by novel UK Prime Minister Liz Truss has started fading away.

Going forward, the UK Gross Domestic Product (GDP) data will remain in focus. The GDP data for the second quarter is expected to decline by 0.1% in line with the prior reading. Also, the annual GDP data will grow at a steady pace of 2.9%.

GBP/JPY

Overview
Today last price 150.62
Today Daily Change -5.02
Today Daily Change % -3.23
Today daily open 155.64
 
Trends
Daily SMA20 163.18
Daily SMA50 163.02
Daily SMA100 163.01
Daily SMA200 160.31
 
Levels
Previous Daily High 160.47
Previous Daily Low 155.45
Previous Weekly High 164.45
Previous Weekly Low 155.45
Previous Monthly High 163.99
Previous Monthly Low 159.45
Daily Fibonacci 38.2% 157.37
Daily Fibonacci 61.8% 158.55
Daily Pivot Point S1 153.9
Daily Pivot Point S2 152.17
Daily Pivot Point S3 148.89
Daily Pivot Point R1 158.92
Daily Pivot Point R2 162.2
Daily Pivot Point R3 163.93

 

 

 

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