All the technical data, charts, tools and indicators you need to analyze and trade the GBP/JPY
BULLISH PERCENTAGE INDEX
The GBP/JPY pair tells the trader how many Japanese Yen (the quote currency) are needed to purchase one British Dollar (the base currency). It is known to be a “carry currency cross”, that is a cross which is a vehicle for carry trading, a strategy that consists in buying a high yielding currency and funding it with a low yielding currency, similar to the adage "buy low, sell high."
FORECAST FOR 2017
FXStreet’s contributors, surveyed at the end of December 2016, globally expect a bullish evolution for the pair, though their forecasts were broadly spread out. The Median Forecast is at 150,0000 for the end of 2017. The lack of consensus on this forecast might be due to the uncertainty that the Brexit negotiations and its issue have been arousing in the markets. See full forecast
HISTORIC HIGHS AND LOWS FOR GBP/JPY
- All-time records: Max: 1014.000 on 01/01/1963 - Min: 116.853 on 19/09/2011
- Last 12 months (March 2016-March 2017): Max: 164.199 on 11/03/2016 - Min: 123.041 on 07/10/2016
- Last 5 years (March 2011-March 2016): Max: 195.843 on 18/06/2015 - Min: 117.296 on 13/01/2012
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE GBP/JPY
The organizations and people that affect the most the moves of the GBP/JPY pair are:
- Bank of England (BoE), known to be one of the most effective central banks in the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy (including interest rates). In 2017, as Haresg Menghani wrote, “BoE Governor Mark Carney has already clarified that, if necessary, he would be willing to tolerate an overshoot in inflation, for some period, in order to support the economy. Hence, any signs of economic slowdown might force BoE to announce another interest rate-cut and (or) an extension of its QE program.”
- Bank of Japan (BoJ) that issues statements and decides on the interest rates of the country. Its Governor is currently Haruhiko Kuroda. The BoJ has been applying very low interest rates for many years and even introduced a negative interest rate in January 2016, in an attempt lift consumer prices, which have been sliding for most of the past 20 years. Falling consumer prices is a concern for the country since they hurt corporate revenues and tend to stop spendings. The Japanese Consumer Price Index (CPI) is a key indicator closely monitored by traders of all JPY-related currency crosses.
- UK Government and its Prime Minister, Theresa May who took office in July 2016, after British citizens voted for the withdrawal of the UK from the European Union (Brexit).
- Japanese Government and its Prime Minister Shinzō Abe, responsible of the so-called “Abenomics” economic policies which are based upon "three arrows" of fiscal stimulus, monetary easing and structural reforms.
- UK GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the GBP, while a low reading is negative.
ASSETS THAT INFLUENCE GBP/JPY THE MOST
- Currencies: USD and EUR. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD and EUR/JPY
- Commodities: Oil.
- Bonds: Gilt (debt securities issued by the Bank of England), GJGB10 (Japan Generic Govt 10Y Yield) and T-Note (Treasury Note, a marketable U.S. government debt security).
- Indices: FTSE 100 (share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization), Nikkei 225 (stock market index for the Tokyo Stock Exchange), Dow Jones (DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).