• Thu. May 30th, 2024

GBP/JPY depreciates to near 195.00 after possible intervention by Japanese authorities

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  • GBP/JPY moves downward after paring intraday gains, a movement possibly linked to intervention by Japanese authorities.
  • The Pound Sterling has strengthened amidst market expectations of BoE holding off on lowering borrowing costs until the next quarter.
  • The significant and enduring interest rate differential between Japan and other nations is anticipated to persist for some time.

GBP/JPY has pared its daily losses, moving downward toward 195.00 during the Asian session on Monday. The Japanese Yen (JPY) has shown significant intraday strength, possibly influenced by intervention by Japanese authorities to support the domestic currency. However, no official announcements are being made. It’s noteworthy that Japanese markets are closed on Monday for Showa Day.

Last Friday, the Bank of Japan (BoJ) opted to maintain its policy settings unchanged, which initially exerted downward pressure on the JPY. However, the prevailing optimistic market sentiment has also played a role in diminishing the safe-haven appeal of the JPY. Consequently, these factors have collectively supported the GBP/JPY cross. Moreover, the anticipation of a prolonged and substantial interest rate gap between Japan and other countries suggests a bias for further depreciation in the trajectory of the Japanese Yen (JPY).

Meanwhile, in the UK, the Pound Sterling (GBP) has strengthened amidst market expectations that the Bank of England (BoE) will likely hold off on lowering borrowing costs until the next quarter, as indicated by median forecasts in a Reuters poll.

According to Reuters, Bank of England Chief Economist Huw Pill remarked last week that interest rate cuts are still not imminent. Moreover, persistent inflationary pressures and robust domestic Purchasing Managers Index (PMI) figures have pushed back expectations for the first BoE rate cut.

GBP/JPY

OVERVIEW
Today last price 195.16
Today Daily Change -2.65
Today Daily Change % -1.34
Today daily open 197.81
TRENDS
Daily SMA20 192.3
Daily SMA50 191.15
Daily SMA100 188
Daily SMA200 185.88
LEVELS
Previous Daily High 197.94
Previous Daily Low 193.97
Previous Weekly High 197.94
Previous Weekly Low 190.32
Previous Monthly High 193.54
Previous Monthly Low 187.96
Daily Fibonacci 38.2% 196.42
Daily Fibonacci 61.8% 195.48
Daily Pivot Point S1 195.21
Daily Pivot Point S2 192.61
Daily Pivot Point S3 191.24
Daily Pivot Point R1 199.17
Daily Pivot Point R2 200.54
Daily Pivot Point R3 203.14

 

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