GBP/JPY plunges from 169.50 area to session lows below 165.00

The pound retreats to levels below 165.00 on an alleged BoJ intervention.
The Japanese authorities have declined any comment.
FX analysts are skeptical about the effectiveness of monetary interventions.

Guillermo Alcala FXStreet

The British pound has depreciated more than 2.5% in a few minutes during Friday's US trading session in what seems like an intervention by the Japanese authorities to protect the yen.

The GBP/JPY was trading at 169.50, at a short distance to a six-year high of 170.25 before plummeting to session lows at 164.70. The pound’s bearish reversal has lacked any fundamental catalyst, and all signs point out to an alleged action by the Bank of Japan and the Ministry of Finance.

The Japanese Ministry of Finance has declined to comment on the issue.

Earlier during the week, however, BoJ officials and Japanese authorities reiterated their commitment to step in to curb yen volatility. On Friday, Finance minister Suzuki affirmed that Japanese authorities were dealing with currency speculators “strictly”.

On Thursday, Masato Kanda, Japan’s vice minister of finance for international affairs assured that the Japanese Government is ready to take action “as excessive volatility becomes increasingly unacceptable.”

Currency analysts are doubtful about the effectiveness of such actions while the fundamental reasons are adverse. The monetary policy differential between a hawkish Federal Reserve and the ultra-accommodative Bank of Japan is clearly favorable to the US dollar.

Technical levels to watch

GBP/JPY

Overview
Today last price	165.55
Today Daily Change	-3.09
Today Daily Change %	-1.83
Today daily open	168.64

Trends
Daily SMA20	162.64
Daily SMA50	162.82
Daily SMA100	163.55
Daily SMA200	161.07

Levels
Previous Daily High	169.74
Previous Daily Low	167.42
Previous Weekly High	167.29
Previous Weekly Low	159.73
Previous Monthly High	167.22
Previous Monthly Low	148.8
Daily Fibonacci 38.2%	168.85
Daily Fibonacci 61.8%	168.31
Daily Pivot Point S1	167.47
Daily Pivot Point S2	166.29
Daily Pivot Point S3	165.16
Daily Pivot Point R1	169.78
Daily Pivot Point R2	170.91
Daily Pivot Point R3	172.09

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold eases towards $4,300 in the Fed's aftermath

Gold retains intraday gains but eases from its intraday peak following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now moving closer to the $4,300 mark.

XRP Price Forecast: XRP clings to 50-day EMA support after CLARITY Act setback

Ripple (XRP) trades lower around $1.28 on Wednesday, as investors broadly assess the impact of the failed United States (US) Senate vote on the CLARITY Act and the upcoming Federal Reserve (Fed) monetary decision. The remittance token has trimmed early-week gains that tagged highs around $1.50 on Monday and now holds key moving-average support.

WTI pulls back below $100 as Saudi Arabia steps up efforts to restore Oil flows

West Texas Intermediate (WTI) Oil falls on Wednesday as Saudi Arabia steps up efforts to restore flows through its East-West pipeline, which was damaged by a drone attack last week. The prospect of a partial restart eases some supply concerns in a market already strained by disruptions across the Middle East.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.