[ad_1]
Investors should monitor key support and resistance levels, including the ¥160 level and the overall range between ¥160 to ¥165.
The GBP/JPY exchange rate experienced a small rally during Monday’s trading session, with a relationship between interest rates in the Japanese yen influencing the currency’s performance. The Bank of Japan is attempting to keep interest rates at or below 50 basis points on the 10-year JGB, which means they will have to print more yen to buy bonds and keep rates low.
The market sentiment on the yen will be positive if rates continue to fall. On Friday, the market formed a hammer near the ¥160 level, which suggests there is some support for the pound. The large, round, and psychologically significant figure will also be a crucial support level to watch. If we do break down below the ¥160 level, we have seen multiple times that buyers are willing to step in and support the market. It is because of this that the market could very well continue to see memory in that area that lifts the pound against the yen.
At present, it seems likely that the market will continue to trade within the range of ¥160 to ¥165. The 50-Day exponential moving average is flat, and the 200-Day EMA is even more so, suggesting that the market could stay in this range for some time. Traders should expect more sideways action and noise in the Forex markets as the market tries to determine a longer-term trend. This is especially true in this market, as it seems to be somewhat choppier than many other Japanese yen related pairs.
- It’s worth noting that the market has been volatile for some time, and investors should pay attention to the uptrend line below.
- The overall market sentiment remains uncertain due to multiple moving pieces in the banking sector, inflation, and central bank actions.
- Additionally, there are questions about global growth, which could lead to more volatility in the Forex markets, including this pair.
Overall, the British pound’s performance is likely to be influenced by the Bank of Japan’s interest rate policies and broader market sentiment. Investors should monitor key support and resistance levels, including the ¥160 level and the overall range between ¥160 to ¥165. As with other major currencies, volatility in the Forex markets is expected, making it essential to keep a close eye on the entire market to get a feel for the risk appetite of traders.
Ready to trade our daily Forex forecast? Here’s a list of some of the best currency trading platforms to check out.
[ad_2]