GBP/JPY slips on Machine Orders miss, but climbing back heading into Tokyo

GBP/JPY slips lower in the overnight session/
Pair winds up where it started following data-heavy Wednesday.

Joshua Gibson FXStreet

GBP/JPY is looking for a foothold heading into Tokyo markets, currently trading back into the 149.50 region following a slip to 149.12 on a Japanese Machine Orders miss. The pair ended yesterday flat after a volatile Wednesday, sinking on disappointing UK inflation data, and spiking following upbeat US inflation data. The pair looks set to resume the downward trend from the past two weeks.

The miss for UK inflation data sent GBP/JPY low enough that any gains from the upbeat US numbers was balanced out, resulting in a flat trading day, and the pair is now declining heading into Tokyo following disappointing numbers from Japan, with Machine Orders year-on-year coming in at a diappointing -5.0%, much lower than the forecast of 2.2%, while month-over-month numbers declined by 11.9%, compared with the forecast 2.3% decline.

The UK still has retail sales figures due Friday at 09:30 GMT, but market direction will largely be determined by risk sentiment following the US inflation beat.

GBP/JPY Technicals

Support and resistance for the pair is currently sitting at yesterday's high/low, 147.95 and 150.02 respectively, while long-term resistance rests above at 150.32, and a break below 147.95 will see GBP/JPY trading at eleven-week lows and directly into the 200-day SMA.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD breaks below 1.1800, two-week lows

EUR/USD’s selling pressure is gathering pace now, breaching below the key 1.1800 yardstick to hit new two-week troughs on Wednesday. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and ahead of the publication of the FOMC Minutes.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.