GBP/JPY senses barricades around 160.50, bulls still hopeful on positive market mood


  • GBP/JPY has faced selling pressure around 160.50 as profit-booking kicks in.
  • The BOE is expected to announce a bumper rate hike in its June monetary policy.
  • The price rise should be accompanied by a wage hike to stable inflation.

The GBP/JPY pair has witnessed some offers after failing to sustain above the critical resistance of 160.50. The odds of upside seem lucrative amid a firmer rebound in the positive market sentiment.  The risk-on impulse is underpinning the risk-sensitive assets and the pound bulls are enjoying liquidity at the cost of the yen bulls.

Rising Inflation in the UK area is the major catalyst, which is worrying the pound bulls.  The Bank of England (BOE) is deploying the majority of its quantitative measures to control the soaring inflation. However, fixing a whopping figure of 9% inflation is not a cakewalk and it will take sufficient time to get cornered.

It is worth noting that the BOE raised its interest rate by 25 basis points (bps) in the first week of May. Officially, the benchmark rate in the UK stands at 1%. As per the market consensus, the BOE could feature a jumbo rate hike in its June monetary policy. Considering the galloping inflationary pressures, a rate hike announcement by 50 bps seems highly required.

Meanwhile, the Japanese yen is worried over grounded inflation in its region. The Statistics Bureau of Japan has reported the Tokyo Consumer Price Index (CPI) at 2.4%, lower than the estimates of 2.7% and the prior print of 2.5%. Japan’s Prime Minister Fumio Kishida stated on Wednesday that the Bank of Japan (BOJ) should make some efforts to achieve the targeted inflation rate of 2%. And BOJ Governor Harihuko Kuroda believes that the dual combo of price rise and wage hike could stable the inflation at desired levels.

GBP/JPY

Overview
Today last price 160.34
Today Daily Change 0.25
Today Daily Change % 0.16
Today daily open 160.09
 
Trends
Daily SMA20 160.36
Daily SMA50 161.53
Daily SMA100 158.33
Daily SMA200 155.56
 
Levels
Previous Daily High 160.83
Previous Daily Low 159.02
Previous Weekly High 161.85
Previous Weekly Low 157.44
Previous Monthly High 168.44
Previous Monthly Low 159.64
Daily Fibonacci 38.2% 159.71
Daily Fibonacci 61.8% 160.14
Daily Pivot Point S1 159.13
Daily Pivot Point S2 158.17
Daily Pivot Point S3 157.31
Daily Pivot Point R1 160.94
Daily Pivot Point R2 161.8
Daily Pivot Point R3 162.76

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures