GBP/JPY remains flat below the 183.00 mark, BoE, BoJ rate decision eyed


  • GBP/JPY hovers around 182.86, gaining 0.05% on the day ahead of the key events.
  • Traders anticipate that the Bank of England (BoE) to raise the rate to 5.5% from 5.25% at Thursday’s meeting.
  • BOJ is anticipated to hold its short-term rate target of -0.1% and its 10-year bond yield target of around 0%.
  • Investors will monitor the BoE, BoJ monetary policy meeting this week.

The GBP/JPY cross oscillates in a narrow range below the 183.00 area during the early European session on Tuesday. Markets participants await the Bank of England (BoE) interest rate decision on Thursday ahead of the Bank of Japan (BoJ) meeting on Friday. These key events could trigger the volatility in the market. The cross currently trades around 182.91, up 0.07% on the day.

Traders anticipate that the Bank of England (BoE) will raise the rate to 5.5% from 5.25% at Thursday’s meeting. The UK economic data last week supported Governor Andrew Bailey's statement this month that the BoE is much closer to ending its tightening cycle. Furthermore, the fear of recession from aggressive rate hikes could exert pressure on the BoE to halt its rate-hiking cycle.

On the Japanese Yen front, BoJ would rather wait until there is more clarity on whether Japan's fragile economy can withstand the impact of slowing US and Chinese demand. BoJ Governor Kazuo Ueda stated last week that the central bank could exit its negative interest rate policy when its inflation target of 2% is near and they would have sufficient evidence by the end of the year to evaluate whether interest rates should stay negative.

At Friday's meeting, the BOJ is largely anticipated to maintain its short-term interest rate target of -0.1% and its 10-year bond yield target of around 0%. Markets are waiting to see whether Governor Kazuo Ueda will provide any new signals about the timing of a policy move at his press conference after the meeting.

Later this week, the UK Consumer Price Index for August will be released on Wednesday. Market players will shift their attention to the BoE and BoJ monetary policy meetings on Thursday and Friday, respectively. Traders will take cues from these events and find trading opportunities around the GBP/JPY cross.

 

GBP/JPY

Overview
Today last price 182.88
Today Daily Change 0.09
Today Daily Change % 0.05
Today daily open 182.79
 
Trends
Daily SMA20 184.25
Daily SMA50 183.17
Daily SMA100 179.56
Daily SMA200 170.93
 
Levels
Previous Daily High 183.35
Previous Daily Low 182.72
Previous Weekly High 184.39
Previous Weekly Low 182.52
Previous Monthly High 186.77
Previous Monthly Low 180.46
Daily Fibonacci 38.2% 182.96
Daily Fibonacci 61.8% 183.11
Daily Pivot Point S1 182.56
Daily Pivot Point S2 182.33
Daily Pivot Point S3 181.93
Daily Pivot Point R1 183.18
Daily Pivot Point R2 183.58
Daily Pivot Point R3 183.8

 

 

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