- GBP/JPY eases from short-term rising wedge resistance.
- BOJ leaves key rates, bond yield target unchanged but sounds worried over the economic outlook.
- Bearish chart formation, downbeat MACD keep sellers hopeful.
Alike other Japanese yen (JPY) pairs, GBP/JPY also stepped back following the Bank of Japan’s (BOJ) monetary policy decision on early Tuesday.
Although the BOJ left the key rate at -0.25% and the 10-year Japanese Governor Bond (JGB) yield towards 0.0%, fears of losing economic momentum due to the coronavirus (COVID-19) seemed to have put a bid under the safe-haven JPY.
Read: BOJ Quarterly Report: There is big uncertainty on outlook
Technically, GBP/JPY recovery from Friday portrays a short-term rising wedge bearish chart pattern on the hourly play.
Given the recently weaker MACD signals, a downside break of 150.15 immediate support line may not hesitate to test the monthly low, marked last week, around 149.00. However, the 150.00 threshold can offer an intermediate halt during the fall.
Meanwhile, an upside break of 150.50 defies the bearish chart pattern but 50% and 61.8% Fibonacci retracement levels of April 20–23 declines, respectively around 150.55 and 150.85, may test the GBP/JPY buyers afterward.
GBP/JPY hourly chart
Trend: Pullback expected
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.
Latest Forex News
Editors’ Picks
EUR/USD extends rally to fresh highs above 1.2180
Dollar’s sell-off accelerates, despite of a generalized dismal mood. Government bond yields surge, stocks plunge as inflation concerns mount. Upbeat German data provide further support to the shared currency.
GBP/USD resumes advance, challenges highs in the 1.4150 area
GBP/USD recovered the ground lost and trades near its weekly high, despite a souring market’s mood. UK PM Johnson's announcement of additional easing of restrictions boosted the pound on Monday. BOE Governor Andrew Bailey is set to speak later on.
XAU/USD retreats from multi-month tops, slides to $1,825 area
Gold is in the hands of the bulls but a correction is on the cards. The monthly outlook is critical which makes the next few weeks testing for the gold market.
BTC crashes, markets follow suit
The cryptocurrency market experienced a crash as the flagship cryptocurrency tumbled. Although some altcoins are recovering, Bitcoin price is still scrambling to find a support level and might trigger another sell-off soon.
S&P 500 Nasdaq Day Ahead: Can the Fed stop the red
Equity markets are in the red again on Tuesday as the Fed looks on powerless for now. Inevitable really, things cannot keep going up forever but it is always easy with hindsight.